Arun Valley Hydropower Development Company Receives Final Approval from ERC to Issue 100% Right Shares

Electricity Regulatory Commission has given final approval to Arun Valley Hydropower Development Company Limited (AHPC) to issue the right shares in the ratio of 1:1 for its shareholders.

The company convened its SGM on Ashad 07 and endorsed 100% rights shares to its shareholders. The meeting of the board of directors held on Baisakh 06 had proposed to issue right shares in the ratio of 1:1 i.e., 18,679,626 right shares of Rs. 100 par value worth Rs 1.86 Arba so that the company can invest 50% of the issued right shares amount i.e., 93,39,813 unit right shares worth Rs 93.39 crore in the Likhu Khola Hydropower Project (30 MW) promoted by PK Hydropower Pvt. Ltd. The remaining 93,39,813 unit shares worth Rs 93.39 crore will be used in paying off the loan taken by the company for the Kabeli 'B'-1 Cascade Hydropower Project in Panchthar.

However, the company will issue the right shares to its shareholders only after the approval of SEBON. As of writing, AHPC has an LTP of Rs. 263.90.