United Modi Hydropower Proposes to Issue Right Shares in the Ratio of 1:1

United Modi Hydropower Limited (UMHL) is set to bolster its financial position through the issuance of the right shares, as per the decision made during a recent Board of Directors meeting. The company plans to issue the right shares in a 1:1 ratio, equivalent to 100% of the existing shares. Shareholders will have the opportunity to apply for additional shares equal to their current holdings.

The decision, made in the meeting held on Mangsir 13, involves issuing 100% right shares on the paid-up capital of Rs. 1.23 Arba, with the aim of raising funds for investment in UMHL's hydropower projects. The company's current paid-up capital stands at Rs. 123.05 crores and the proposed issuance of 12,305,000 units of right shares would increase it to Rs. 2.46 Arba.

However, it's crucial to note that the execution of this plan is contingent upon obtaining approvals from regulatory bodies. UMHL will seek approval from both the Electricity Regulatory Commission and the Securities Board of Nepal (SEBON). Additionally, the final endorsement is required at the company's upcoming Annual General Meeting (AGM).

The right offering procedures will commence after obtaining the necessary approvals. Following the AGM's endorsement, UMHL will appoint an issue and sales manager before submitting the application to SEBON for permission to float the shares. Only after receiving regulatory approval can the company proceed with the sale of shares to the public.