Arun Valley Hydropower Distributes Right Shares; Auction of Remaining Shares Can Add Over Rs. 15 Crores as Non-Operating Profit

Arun Valley Hydropower Development Company Limited has distributed its 1:0.5 ratio right share to its shareholders on 18th Jestha, 2078.

22,706 valid applicants have been distributed a total of 48,04,313 units. Given that 52,41,197 shares were issued, the remaining 4,36,884 shares will be auctioned.

If the remaining shares will be auctioned away at an average price equal to the company's LTP of Rs. 445, the auction will add an extra Rs. 15,07,24,980 as a non-operating profit to the company's books. Note that this is only an approximation, and the auction cut-off rate may deviate from this figure. 

The company opened its rights offering on 6th Baisakh, 2078. The issue was supposed to close on Baisakh 26th. However, the meeting of the board of directors decided to extend the auction deadline till Jestha 02 on account of the unfavorable conditions created by the pandemic.

The rights offering was in a 1:0.5 structure, i.e. investors could apply for an extra share for every two shares that they own before the book closure date. Chaitra 09 was the book closure date for the rights offering. Thus, investors maintained before that day was entitled to apply for the rights offering. A total of 52,41,197 shares were issued at Rs. 100 per unit to eligible investors.

This is the first phase issue of the 1:1 right shares issue that Arun Valley Hydropower Development Company Limited has already passed via its 21st AGM. This capital will be invested in the Kabeli-B1 Cascade Hydropower Project. The entire rights offering will issue a total of 99,83,232 shares.

Allotment Notice