Chhyangdi Hydropower (CHL)'s Rights Offering Subscribed 65.26%, Company Likely to Earn Over Rs. 7.75 Crores With Auction of Remnant Shares

Chhyangdi Hydropower Limited (CHL) has closed its 10:3 ratio rights offering on Falgun 02, 2078. The issue had opened on 11th Magh.

A total of 8,93,025 shares were issued to eligible shareholders at a par value of Rs. 100 per unit. This will raise Rs. 8,93,02,500 for the company. Poush 21 was the book closure date for the rights offering. Thus, shareholders maintained before that day could apply for the right shares.

According to CDSC, 27,740 eligible shareholders applied for a total of 5,82,824 shares. Thus, this rights offering could only receive a 65.26% subscription.

Thus, the remaining 3,10,201 shares will now be auctioned. CHL closed at Rs. 480 today. Considering a conservative average auction rate of Rs. 350, this auction will earn over Rs. 7.75 crores worth of premium value on these right shares.

The paid-up capital of the company after 30% rights shares adjustment will be Rs. 38,69,77,500. Thus, the added premium value translates to added earnings of Rs. 20 per share. The annualized EPS of the company as of Poush, 2078 is Rs. 5.72.