Electricity Board Grants Approval to Himal Dolakha Hydropower for the Issue of Right Shares in the Ratio of 1:0.75
Fri, Jan 6, 2023 12:31 PM on Latest, Dividend, Bonus & Rights, Stock Market,
According to the official notice of the Electricity Regulatory Commission, Himal Dolakha Hydropower Company Limited (HDHPC) has been granted consent for the public issue of rights shares.
According to Rule 45 of the Electricity Regulatory Commission Regulations, 2075, the board has granted approval for the issue of the right shares in the ratio of 1:0.75 of the paid-up capital in regard to the application submitted for prior approval for the public issue of rights shares. At the board of directors meeting held on Shrawan 13, the company proposed issuing right shares in a 1:0.75 ratio, or 75% of the company's paid-up capital. The same agenda has been approved by 13th and 14th AGM of the company.
Despite the Electricity Regulatory Authority's approval of HDHPC's right issue, the Securities Board of Nepal (SEBON) final approval is mandatory before the company can proceed with the right issue.
The current paid-up capital of HDHPC as of the first quarter report of Fiscal Year 2079/80 is Rs. 1.60 Arba. Hence, after the issue of the right share in the ratio of 1:0.75, the paid-up capital of the company will be increased to Rs. 2.8 Arba. Similarly, the company's last trading price (LTP) as of January 5, 2023 is Rs. 223.
Also, there are also a few conditions that have to be implied by HDHPC before issuing the right shares. They are:
- If there is a need to obtain consent from the authority that issued the permit and other agencies under the prevailing law, the Commission should be informed about it.
- The company has to follow the standards, guidelines, and guidelines issued by the Commission from time to time regarding corporate governance
- When the commission issues orders or circulars from time to time to implement the laws, rules, regulations, and guidelines and to edit specific topics, the company will have to comply with them.
- Payment of profit tax and other taxes according to the prevailing law in a timely manner.
