Ankhu Khola Jalbidhyut Company Limited (AKJCL) plans to issue right shares in a 1:1.5 ratio after receiving approval from the Securities Board Of Nepal (SEBON). This move aims to raise funds for the 20 MW Ankhu Khola-2 Hydroelectric Project and will increase the company’s paid-up capital from Rs. 80 crores to Rs. 200 crores.
Key Points On AKJCL Right Share
- Ankhu Khola Jalbidhyut Company Limited (AKJCL) intends to sell right shares to its shareholders and has submitted an application to the Securities Board Of Nepal (SEBON) on Bhadra 21, 2080 BS.
- The Electricity Regulatory Commission has already approved the company’s right offering.
- The company plans to float right shares in a 1:1.5 ratio, meaning shareholders with 100 shares can apply for an additional 150 shares.
- Initially, the company proposed a 1:2 ratio, but it was amended as per the direction of the Electricity Regulatory Commission.
- Nabil Investment Banking Limited has been appointed as the issue and sales manager for the right shares.
- The funds raised through this offering will be used for the investment in the 20 MW Ankhu Khola-2 Hydroelectric Project in Dhading district, where AKJCL will have a minimum 60 percent ownership.
- AKJCL currently has a paid-up capital of Rs. 80 crores and plans to sell right shares worth Rs. 120 crores, increasing the paid-up capital to Rs. 200 crores.
- Rs. 96 crores of the funds raised will be invested as equity in the 20 MW project, while the remainder will be used to repay debts to banks and financial institutions.