Arun Valley Hydropower (AHPC) Selling Shares of AKPL Worth Over Rs. 1 Arba, Sale Will Help Company to Re-establish Strong Financial Footing

Arun Valley Hydropower Development Company Limited (AHPC) is selling the promoter shares of Arun Kabeli Power Limited (AKPL) in NEPSE.

The Electricity Regulatory Commission requires companies to disclose their decision to sell the shares of hydropower companies listed in NEPSE. As such, AHPC has unveiled a public announcement informing about its decision to sell 22,32,570 promoter shares of Arun Kabeli Limited.

The promoter shares can be sold at the price of AKPL's ordinary shares. AKPL closed at Rs. 601 per share last week. Assuming that the shares can be sold at the same average price, Arun Valley Hydropower (AHPC) will earn Rs. 1.34 Arba from the sale. According to its 2nd quarterly report, AHPC has around Rs. 47 crores worth of borrowings and payables. This sale may enable it to pay back the due amount and establish a strong financial position.

As of writing, AKPL is trading at Rs. 590, a loss of 1.83% from last week's closing. Meanwhile, AHPC has gained 2.87% and is trading at Rs. 610.