Eastern Hydropower Limited has received amended prior approval from the Electricity Regulatory Commission (ERC) to issue 54 lakh right shares to its existing shareholders.

The approval follows a decision by the company’s 9th Annual General Meeting (AGM) to raise additional capital through a rights issue equivalent to its existing paid-up capital.

Eastern Hydropower had initially sought ERC approval to issue 62 lakh right shares, representing 100% of its current paid-up capital of Rs 62 crore under a 1:1 ratio.

However, the ERC subsequently approved a revised rights ratio of 1:0.871, reducing the proposed issue size. The company has now received an amended approval for 54 lakh shares under the same 1:0.871 ratio.

The approved issue carries a face value of Rs 100 per share, putting the total value of the rights issue at approximately Rs 54 crore.

The additional capital is expected to strengthen the company's paid-up capital and provide funding for its business and project-related requirements.

However, the ERC approval is only a prior regulatory approval. Eastern Hydropower will still need to complete the remaining regulatory and issuance procedures before the rights shares can be offered to shareholders.

For existing shareholders, the final rights ratio means shareholders will receive the right to subscribe to 0.871 new shares for every one existing share, subject to the final issue terms and applicable approvals.