Attention: Api Power Company (API) Gets Pre-Approval from Electricity Regulatory Commission to Issue Right Shares in Second Phase

The Electricity Regulatory Commission has given approval to Api Power Company (API) for the second phase of its rights shares issue. It is to be noted that the first phase of the issue has already been completed and the company has already raised Rs. 56.7 crores. The second phase will raise another Rs. 56.7 crores. The capital will be raised by issuing 56,70,000 units right shares.

The company is issuing the right shares to generate capital for the construction of the third project, the Upper Chameliya Hydropower Project with a 40 MW capacity. Api Power has inaugurated its 40 MW third hydro project Upper Chameliya on Kartik 1, 2077 and the project is now under construction. The project will generate 26.41 crores of units of electricity annually. Of the electricity generated, 30 percent will be generated in six months of winter and the remaining 70 percent in six months of rain. In the first year, Rs. 162 crores revenue will be earned.

A total of Rs. 740 crore is estimated to be the cost of the project. The company will cover 30% of the total cost, i.e. 222 crores by issuing rights shares to its shareholders in three stages. The rest 70% will be borrowed. While the first two issues will raise Rs. 56.7 crores each, the third issue will raise a total of Rs. 108.6 crores.

While writing this, the second phase of the issue of the right shares is on SEBON's Waiting List. The 8.5 MW Naugad Gad Small Hydropower project of the company has successfully commenced its commercial operation and the company has also completed the construction of the 8 MW Upper Naugadh Gad Hydropower Project which had already started its commercial operation from 13th Kartik, 2076.