Three Star Hydropower Limited Proposes to Issue 100% Right Shares; Decision Subject to Approval from ERC

According to the decision of the Board of Directors meeting of Three Star Hydropower Limited (TSHL), 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 Kartik 5, 2081 has decided to issue the 100% right shares on the paid-up capital of Rs. 49.25 Crore. Hence, after the issue of 49,25,000 units of right shares, the paid-up capital of the company will increase to Rs. 98.5 Crore.

From the funds raised through the issuance of the right shares, Rs. 34,25,00,000 will be allocated to repay the bank loan and other liabilities incurred for the project's construction. The remaining amount of Rs. 15,00,00,000 will be used for the equity investment in the under-construction Upper Burundi A Hydroelectric Project (9 MW).

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).

TSHL closed at Rs. 865.00.