BPC announces book closure on Feb 5 for much-awaited 3:2 rights shares

ShareSansar, January 29:

Butwal Power Company Limited has announced book closure for its 3:2 rights shares which approved by the company three years ago.

The process of the rights issuance was, however, delayed because of the uncertainties stemming from the dispute between the company and the government over the nature of investment.

After getting a green light from SEBON , a meeting of company’s  BoD held on January 12 had decided to announce book closure for one day on February 5.

Issuing a notice today, BPC has clarified that only those shareholders who apply for the rights shares a day before the book closure date, or by February 4, would be eligible for the rights shares.

NMB Capital Limited is the RTS.

BPC is issuing the rights shares to generate funds for investing in the 37.6 MW Kabeli A Hydropower Project.  

BPC is plans to invest Rs 1 arba on the Kabeli project. The company plans to raise Rs 66 crore through rights shares and seek loans for the remaining amount.

While Shangrila Energy has 68.95% stake in the company, the remaining stakes are owned by Intercraft (6.05), government (9.09), general public (10), employees (2), NEA (1.06) and Nepal Industrial Development Corporation (0.06).