Eastern Hydropower Receives Amended Regulatory Approval to Issue 54 Lakh Right Shares

Eastern Hydropower Limited has received prior approval from the Electricity Regulatory Commission (ERC) to issue 54 lakhs right shares to its existing shareholders.

The company said the approval follows a decision made at its 9th Annual General Meeting (AGM) to issue right shares equivalent to its current paid-up capital on a 1:1 ratio.

Eastern Hydropower had initially submitted an application to the Electricity Regulatory Commission seeking prior approval to issue 6.2 million right shares, equivalent to 100% of its current paid-up capital of Rs. 62 Crores.

However, through a letter dated Bhadra 8, 2083, the Commission granted prior approval for the issuance of right shares at a revised ratio of 1:0.871, amounting to 5,400,092.743 shares with a proposed value of approximately Rs. 54.009 crores.

The company has now received another letter from the Electricity Regulatory Commission, dated Bhadra 17, 2083, providing prior approval, with certain amendments, to issue 54 lakhs right shares at the 1:0.871 ratio.

The total value of the approved right share issue stands at Rs. 54.00 Crores, with each share carrying a face value of Rs. 100.

The proposed right share issue will increase the company's paid-up capital and provide additional funds for its business and project-related requirements, subject to the remaining regulatory and issuance procedures.