Ngadi Group Power Proposes to Issue 100% Right Shares; Decision Subject to Approval from ERC

Ngadi Group Power Limited (NGPL) has proposed to issue 100% rights shares to its shareholders.

The proposal was made during the Board of Directors (BoD) meeting held on Ashad 17, 2080. The company's current project, Siurikhola Small Hydropower Project located in Lamjung District, Gandaki Province (4.95 MW.) has been achieving the expected results due to regular maintenance of the project. In order to maintain the operated projects, settle the balance of payments, and invest in new projects, as well as identify sources of investment and create jobs and increase the national capital, since the entire amount cannot be raised from the project's accumulated profits, bank loans, and other alternative sources. Therefore to address this funding requirement, NGPL aims to issue rights shares in the ratio of 1:1 to its existing shareholders.

The current paid-up capital of the company is Rs. 1.85 Arba which will reach Rs. 3.7 Arba after issuance of 100% right shares.

Note that the issuance of the right shares is contingent upon approval from the Electricity Regulatory Commission and subsequent endorsement at the company's upcoming Annual General Meeting (AGM).

Earlier, NGPL issued 150% rights shares to its shareholders from Shrawan 18 to 7th Bhadra, 2079.

As of July 02, the last trading price of NGPL shares was Rs 241.