Api Power Company Limited is closing the issue of right shares in the ratio 1:0.476 to its shareholders from today, i.e. Mangsir 04. Thus, eligible investors can still apply for the issue till banking hours today. The issue of right shares totaling 56,70,000 units was open from 14th Kartik.
As of now, the company's paid-up capital is Rs. 119.07 crores. After this issue, the paid-up capital will be Rs. 175 crores.
The company is issuing the right shares to generate capital for the construction of the third project, the Upper Chameliya Hydropower Project with a 40 MW capacity. The project will generate 26.41 crores of units of electricity annually. Of the electricity generated, 30 percent will be generated in six months of winter and the remaining 70 percent in six months of rain. In the first year, Rs. 162 crores revenue will be earned.
A total of Rs. 740 crore is estimated to be the cost of the project. The company will cover 30% of the total cost by issuing rights shares to its shareholders in two stages. The rest 70% will be borrowed.