As per Ranju Adhikari, Company Secretary of Arun Valley, the company decided to postpone the FPO due to the current scenario of the stock market. She said that the company decided that the right issue will be a right option than the FPO.
"In the current bearish trend, it seems impossible to issue the FPO at the proposed price. Moreover, the under subscription of recently issued FPO of Butwal Power Company also prompted the company to take the decision," she stated. She opined that the amount accumulated from the right issue will be invested in 9.4MW Kabeli B1 Cascade Project.
Meanwhile, stock investors have questioned the intention of the listed companies in altering their decisions time and again. Visibly, these types of alteration are more often seen in listed companies without definitive regulators.
According to a stock investor, Ramesh Dhungana, such companies are risking the investment of the general investors. "Change in decisions jeopardizes the stock investors' motive of investment. The companies play foul while altering their decision. It proves that the companies are not serious about the investment made by a common stockholder," he alleged.
Previously, Arun Valley announced of issuing 3,157,883 units of FPO at a price of Rs 301 with a face value of Rs 100 at premium of Rs 201.
