Butwal Power Company rights shares awaiting SEBON approval

ShareSansar, July 24:

Butwal Power Company is planning to issue rights shares with a ratio of 3:2. The company is issuing the rights shares to generate funds for investing in the 37.6 MW Kabeli A Hydropower Project.

The proposal to issue rights shares was approved by the company three years ago, but the process was delayed because of the uncertainties stemming from the dispute between the company and the government over the nature of investment.

The company has completed all the preparations for issuing rights shares and is now awaiting green light from SEBON.

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).