Panchthar Power Limited Proposes to Issue 100% Right Shares; Decision Subject to Approval from ERC

According to the decision of the Board of Directors meeting of Panchthar Power Company Limited (PPCL), the company has proposed to issue right shares in the ratio of 1:1 or 100% right shares.

The meeting of the board of directors held on Poush 2 & 3, 2081 has decided to issue the 100% right shares on the paid-up capital of Rs. 96.25 Crore. Hence, after the issue of 9,625,000 units of right shares, the paid-up capital of the company will increase to Rs. 1.92 Arba.

The Hewa Khola "A" Hydropower Project in Panchthar, promoted by the company and financed under Sanima Bank's leadership, was completed on 14.9 MW but suffered damage due to floods on 2080/03/02 and 2081/06/10. Reconstruction is underway with additional co-financing loans, aiming to restart operations by 2081/06/15, while regular loan repayments continue.

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 and the Securities Board of Nepal (SEBON).

PPCL closed at Rs. 298.00.