Singati Hydro Energy (SHEL) Proposes to Issue Right Shares at the Ratio of 1:1

The Board of Directors (BOD) meeting of Singati Hydro Energy Limited (SHEL) held today has decided to issue 1:1 or 100% right shares.

SHEL has 14,500,000 unit shares listed in NEPSE and maintains a paid-up capital of Rs. 1.45 Arba which will reach to Rs. 2.9 Arba after issuance of 100% right shares. The hydropower company claims that the decision to issue the right shares has been taken to generate income for investment into other companies as well as for debt clearance.

The decision is subject to approval from the concerned regulatory bodies and subsequent endorsement at the upcoming Annual General Meeting (AGM) of the company.

The company has been generating revenue from a 25 MW Singati Hydropower Project in Dolakha District. The project is one of the ‘super six’ hydro power projects of Nepal. The project received the license in 2010. However, due to procedural delays in government offices following the 2015 earthquake, it started construction only on July 8, 2016, after six years of receiving the license. This project is constructed under BOOT (Build, own, Operate and Transfer) mechanism.