Modi Energy Limited Receives Pre Approval from ERC to Issue 100% Right Shares

The Electricity Regulatory Commission has given Pre-approval to Modi Energy Limited (MEL) to issue the right shares in the ratio of 1: 1 for its shareholders.

The 58th meeting of the board of directors held on Shrawan 30 has decided to issue the 100% right shares on the paid-up capital of Rs. 2.90 Arba. Hence, after the issue of 29,000,000 units of right shares, the paid-up capital of the company will be revamped to Rs. 5.80 Arba.

The company aims to bolster the company’s financial standing by repaying a substantial portion of its outstanding bank loan. However, it is important to note that the issuance of these right shares is contingent upon receiving approvals from both the regulatory bodies, namely the Electricity Regulatory Commission.

However, the company will issue the right shares to its shareholders only after the approval of SEBON. MEL closed at Rs. 310.00.