Applications for the rights shares of API Power can be made starting today.

API Power Company Limited's rights offering is commencing today, on Wednesday, August 16. The company has announced a 40 percent allocation of right shares. In this regard, the company is set to release 1,65,33,137 right shares valued at NPR 1,065,33,13,700, priced at NPR 100 per share, with a distribution ratio of 1:0.40. This marks the company's fourth rights offering, following previous entitlement distributions of 1:0.47, 1:0.29, and 1:0.39. The proceeds from this issuance will primarily be utilized to repay the loans associated with the operational electricity projects. Among the operational projects are the 8.5 MW Gaugad Deep Hydroelectric Project, the 8 MW Upper Naugarh Deep Hydroelectric Project, the 4 MW Chandranigahpur Solar Power Project, the 1 MW Dhalkebar Solar Power Project, and the Simra Solar Power Project. The cumulative loan borrowed for these projects amounts to NPR 1,685,74,065.43.

Notably, the company has successfully concluded all assessments and initiated production at the 40 MW Upper Chamelia hydropower project.

Entitlement Details:

Eligibility:
The company concluded its financial records on June 22, making only those shareholders who executed transactions on the Nepal Stock Exchange (NEPSE) until June 21 eligible to participate in the rights offering.

Application Period:
Investors can submit their applications for the upcoming rights offering until August 19th, subsequent to the commencement on July 31st.

Credit Rating:
CARE Nepal, a credit rating agency, has assigned a CARE NP double plus rating to these rights shares. This rating reflects a moderate risk regarding the capacity to meet financial obligations.

Sales Management:
For the execution of the rights offering, Muktinath Capital Limited has been appointed as the issuing and selling manager.

Application Procedure:
Interested parties can apply through Muktinath Capital, either at API Power's registered office in Thapathali or at the designated branch office of Muktinath Bikas Bank. Additionally, application submissions are accepted at all banks and financial institutions holding an ASWA permit from the Securities Board, as well as through the "Mero Shares" platform.