Two hydropower companies have submitted applications to the Securities Board of Nepal (SEBON) seeking approval to issue rights shares to existing shareholders.

People's Hydropower Company Limited has applied to issue rights shares in a 1:1 ratio, equivalent to 100 percent of its current paid-up capital. If approved, existing shareholders will be entitled to purchase one additional share for every share they currently hold.

Similarly, Arun Kabeli Power Company Limited has sought approval to issue rights shares in a 2:1 ratio, representing 50 percent of its existing paid-up capital. Under the proposal, shareholders would receive the right to purchase one new share for every two shares currently owned.

The companies have submitted their proposals to SEBON as part of efforts to strengthen capital structure and support future investment and operational plans.

Following regulatory approval from the Securities Board of Nepal, both companies will proceed with the rights share issuance process and announce detailed schedules for eligible shareholders.

Rights shares allow existing shareholders to maintain their ownership stake while providing companies with an avenue to raise additional funds without bringing in new investors.