Arun Kabeli Hydropower Gets Approval from Electricity Regulatory Commission to Issue Rights Share at 1:1 Ratio

Electricity Regulatory Commission has given permission to Arun Kabeli Hydropower (AKPL) to issue right shares.

AKPL has been given permission by the Nepal Electricity Regulatory Commission to issue rights shares.

The company is now permitted by the commission to issue right shares at a 1:1 ratio.

Only after obtaining clearance from the Securities Exchange Board of Nepal (SEBON) will the company's right shares be offered.

A special resolution was approved by the company's 11th Annual General Meeting to issue 100% right shares of the paid-up capital after the proposed 17% bonus shares in the paid-up capital of the fiscal year 2077–2078. Likewise, Arun Kabeli's paid-up capital had increased to Rs. 1.85 Arba following the distribution of the bonus shares.

Hence, the company's share capital would rise to Rs. 3.7 Arba after issuing rights shares at a ratio of 1:1 from its current share capital of Rs. 1.85 Arba as of the fourth quarter of FY 78/79.

About the company:

Arun Valley Hydropower Development Company is established in 2054 BS with the objectives of generating hydroelectricity as a Private limited company.

Currently, the 25 MW Kabeli B-1 hydroelectric project is now being run by the company. Also, the company and the Electricity Authority have concluded a (Power Purchase Agreement) PPA for 141.75 GW of electricity.

Promoters of the company possess a 70% share holding in the company, While the public own 30% of the stock.