First phase of 200% right issuance of Api Power approved by SEBON; Company to issue 56.70 lakh units i.e 47%

Securities Board of Nepal (SEBON) has approved the right shares of Api Power Company (API) on Falgun 12, 2076.

The company is issuing 200% (1:2) right shares for the construction of 40 MW Upper Chameliya HEP. The shares will be issued in various phases. In the first phase, a total of 56.70 lakh units will be issued collecting Rs 56.70 crore. This amount is 47% (1:047) of the current paid-up capital i.e Rs 119.07 crore.

After raising funds and starting construction, the company will provide a progress report of the project at the beginning of the next fiscal year and then apply in SEBON for the second phase of the right issuance. API has received the approval of the Electricity Regulatory Authority for the second phase also.

The company is currently operating 8.5MW Naugad Gaad which started production from Bhadra 2072. Similarly, the 8 MW Upper Naugad Gaad has started production from Kartik 2076.

The Upper Chamelia Project is located in Darchula District where it has already constructed 2 more projects. According to the CEO, Mr. Sanjeev Neupane, the project will be completed by the next 30 months. The company has been regularly distributing dividends for the last three years and this year's AGM had been delayed due to the ongoing right issuance process. It adds, the company will convene AGM and distribute dividends within Chaitra, 2076.