Arun Kabeli Power Gets Pre-Approval to Issue 50% Right Shares
Arun Kabeli Power Company Limited has received regulatory pre-approval to issue right shares worth 50% of its paid-up capital.
Arun Kabeli Power Company Limited has received pre-approval from the Electricity Regulatory Commission Nepal to issue right shares.
The company has been permitted to issue right shares equivalent to 50% of its current paid-up capital of Rs. 3.89 Arba, in a 1:0.5 ratio. This means the company will proceed with issuing right shares worth approximately Rs. 1.94 Arba.
The commission has also set conditions regarding the utilization of the raised funds. Out of the total proceeds, Rs. 1 Arba must be used to repay loans taken for the Kabeli B-1 Hydropower Project. The remaining Rs. 94.79 Crores is to be invested in Kabeli Energy, the promoter of the 37.6 MW Kabeli ‘A’ Hydropower Project.
The company is required to notify the commission with necessary documents within 15 days of making the investment. Additionally, any further approvals required from other regulatory bodies must also be obtained as per prevailing laws.
This move is expected to strengthen the company’s financial structure and support the expansion of its hydropower projects.