Chhyangdi Hydropower Company Limited (CHL) has proposed 40% right shares issuance on the paid-up capital maintained after already-endorsed 30% right shares.
The 6th Annual General Meeting (AGM) held on Poush 29, 2076 has already endorsed a 30% right shares on the paid-up capital of Rs. 28.35 crores. The proposal is under review by the regulatory board SEBON.
Pertaining to Nepal Electricity's Authority's liberal policy on rights issuance, hydropower companies can issue the right shares to complete the remaining construction work of the project in case it can't be completed with initial resources. For this, the cost of project construction has to have gone higher than the company can bear due to uncontrollable circumstances. Uncontrollable conditions include disasters caused by natural disasters, epidemics, wars, internal rebellions, shutdowns, strikes, blockades, etc. that cause an obstruction in needed manpower and resources.
Utilizing the same provision, Chhyangdi Hydropower Company Limited (CHL) has proposed an additional 40% rights issuance on the paid-up capital maintained after already-endorsed 30% right shares. The company has justified that the additional capital is needed to make up for the raised cost in construction of the Upper Chhandi Khola Small Hydropower Project 4MW due to the pandemic and floods.
The paid-up capital of the company after 30% rights issuance will be Rs. 38,69,77,500. After adjustment of this figure, the 40% right shares will be issued on this capital, finally bringing the paid-up capital to Rs. 54,17,68,500.