SEBON Approves Rights Issue for Shivashree Hydropower and City Hotel
Shivashree Hydropower and City Hotel have received SEBON approval to issue rights shares, allowing both firms to raise capital through shareholder offerings.
Nepal’s securities regulator has granted approval to two listed companies — Shivashree Hydropower and City Hotel — to raise capital via rights share offerings.
According to the Securities Board of Nepal (SEBON), both companies received clearance on Sunday, July 20 (Shrawan 4), to proceed with their proposed issuances.
Shivashree Hydropower Limited has secured regulatory approval to issue 100% rights shares on its current paid-up capital of NPR 1.47 billion. This means shareholders will be offered one new share for every share they currently hold, effectively doubling the number of outstanding shares. Citizens Capital will act as the issue manager for this offering.
Meanwhile, City Hotel Limited has been approved to issue rights shares at a rate of 0.08 shares for each share held — equivalent to an 8% rights issue. The offering will be priced at a par value of NPR 100 per share. City Hotel plans to raise capital based on its current paid-up capital of NPR 1.3392 billion. Prabhu Capital has been appointed as the issue manager.
The rights issues aim to enhance financial flexibility for both companies, enabling them to fund expansion or strengthen operational capacity without seeking external borrowing.