Urja Khabar
Kathmandu: Seventeen hydropower companies listed on the Nepal Stock Exchange (NEPSE) have sought approval from the Securities Board of Nepal (SEBON) to issue rights shares worth Rs 20.82 billion, accounting for more than half of the total rights shares currently awaiting regulatory approval.
The hydropower companies have applied to issue approximately 208.2 million rights shares as they seek to raise funds for new projects, repay loans and strengthen their financial positions.
Sahas Urja Limited has sought the largest rights issue among the hydropower companies, applying to issue 45.738 million shares worth approximately Rs 4.57 billion.
Hydropower companies have increasingly turned to rights issues as a means of raising additional capital. While some are seeking funds to invest in new projects, others, particularly those facing financial difficulties, aim to manage debt obligations and improve their financial health.
The proposed hydropower rights issues are part of a broader pipeline of applications at SEBON. A total of 30 NEPSE-listed companies have sought approval to issue rights shares worth Rs 40.15 billion, equivalent to approximately 401.47 million shares.
Besides hydropower companies, the applicants include three insurance companies, two investment companies, four manufacturing and processing companies, two hotel and tourism companies and a bank.
Nepal Lube Oil has applied to issue 1,457,253 rights shares at a ratio of 1:2, equivalent to 200 percent of its existing paid-up capital.
Several hydropower companies have also approved rights issues through their annual general meetings and are preparing to proceed with the issuance process.
