Arun Kabeli Power Plans Rs 1.94 Billion Capital Hike via Right Shares

Arun Kabeli Power Limited (AKPL) has cleared a major hurdle in its capital expansion plan by securing preliminary approval from the Electricity Regulatory Commission (ERC) for a 50% right shares offering. The company plans to issue right shares in the ratio of 1:0.50 based on its current paid-up capital of Rs 3.89 billion. Upon successful issuance of the 19,479,710.5 units of right shares, the company’s paid-up capital will surge to Rs 5.84 billion. According to the management, the proceeds from this issuance (approx. Rs 1.94 billion) are strategically allocated: Rs 100 crore will be utilized to settle outstanding loans incurred during the construction of the Kabeli B-1 Hydropower Project, while the remaining Rs 94.79 crore is earmarked for investment in Kabeli Energy Limited (the promoter of the 37.6 MW Kabeli A Hydropower Project). The company is now required to submit supporting documentation to the Commission within 15 days. The final issuance will proceed only after receiving the ultimate stamp of approval from the Securities Board of Nepal (SEBON). As of the last trading day, AKPL’s shares were valued at Rs 268.00 on the secondary market.