Rapti Hydro Receives Pre-Approval to Issue Rights Shares
Rapti Hydro and General Construction has received pre-approval from the Electricity Regulatory Commission to issue 3,081,262 rights shares.
Rapti Hydro and General Construction Limited has received pre-approval from the Electricity Regulatory Commission for the issuance of rights shares.
The company had proposed issuing rights shares at a ratio of 1:0.4661 based on its current paid-up capital of Rs. 1.2255 billion. However, the commission has approved the issuance of 3,081,262 rights shares at a ratio of 1:0.2514.
The total value of the approved rights shares is Rs. 308.12 million. According to the commission, the funds raised through the rights issue must be used to repay loans owed to the consortium banks.
Earlier, the company had applied to issue 5,713,034.86 rights shares at a ratio of 1:0.4661. The commission stated that pre-approval is not generally provided for repaying loans of promoter companies and therefore approved only the amount equivalent to the company’s updated bank loan obligations.