Api Power Company Limited has received the regulatory board's approval for the second right shares issue in the ratio 1:0.2938 to its shareholders i.e. 56,70,000 units.
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. 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 first phase has already been completed. The rest 70% will be borrowed.
The right shares totalling 56,70,000 units will now be issued. SEBON gave approval to the second phase of rights offering on Baisakh 19, 2078. Muktinath Capital is appointed the issue manager.
The Upper Chameliya Hydropower Project will generate 26.41 crores 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.
The total paid up capital of API is Rs 192.97 crore, after the issuance of approved right share, the paid up capital will increase to Rs 249.67 crore.