People's Power Limited Proposes to Issue Right Shares in the Ratio of 1: 0.5

People's Power Limited (PPL) plans to offer its shareholders additional shares through a rights issue. The company has decided to issue these rights shares in the ratio of 1:0.5 or 50% right shares., allowing existing shareholders with 100 shares to apply for an additional 50 rights shares. During the board meeting on Sunday, it was decided to issue rights shares at a 1:0.5 ratio.

People's Power Limited possesses a paid-up capital of Rs. 63.26 crores. Consequently, the company intends to introduce 31,63,000 shares through the rights offering, with a par value of Rs. 100 per share, resulting in a total right issue value of Rs. 31.63 crores. 
The company has informed us that the decision has been made to maintain the existing 4.96-megawatt Pawa-2 hydropower project regularly, settle outstanding payments, and make new investments.

Following the AGM's endorsement, the company must designate an issue and sales manager to oversee the rights offering. Subsequently, an application seeking permission to float the shares must be submitted to the Securities Board of Nepal (SEBON). Only upon receiving regulatory approval from SEBON can the company sell shares to the public.

Upon the completion of the rights issue, the paid-up capital of People's Power Limited will increase to NPR 94.89 Crores.