Himalaya Urja Bikas Company Receives Approval From Electricity Regulatory Commission to Issue 100% Right Shares

The Electricity Regulatory Commission (ERC) granted permission to Himalaya Urja Bikas Company Limited (HURJA) to issue rights shares to the general public.

The Electricity Regulatory Commission (ERC) has granted approval for the issue of the right shares in the ratio of 1:1. At the board of directors meeting held on Poush 05, the company proposed issuing right shares in a 1:2 ratio, or 200% of the company's paid-up capital. The same agenda was approved in the 22nd AGM of the company but was subject to approval from the ERC. However, the board has now given its approval for the issuance of the right shares in the ratio of 1:1 or 100% instead 1:2 or 200%.

Despite the Electricity Regulatory Authority's approval of HURJA'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 HURJA as of the first quarter report of Fiscal Year 2079/80 is Rs. Rs. 99 Crores Hence, after the issue of the right share in the ratio of 1:1, the paid-up capital of the company will be increased to Rs. 1.98 Arba. Similarly, the company's last trading price (LTP) as of April 09, 2023, is Rs. 300.