The company is issuing 100 percent right shares to its existing shareholders.
As per this, the company is issuing 1:1 i.e. 14.5 million units of right shares worth Rs 1.45 billion at a face value of Rs 100.
The company closed its book on January 7 for the right purpose, thus, the shareholders registered in its book till January 6 will be eligible to apply for the right shares.
Care Ratings has assigned BB rating to the issuer indicating moderate risks.
The company has appointed Kumari Capital as issue manager. the interested existing shareholders can apply from the office of issue manager and designated branches of Kumari Bank, Nepal Investment Mega Bank, Prabhu Bank and Nepal Bank. Moreover, they can apply from all C-ASBA approved BFIs and Meroshare.
Currently, the company has a paid-up capital of Rs 1.45 billion which will reach Rs 2.90 billion after the right share.
According to the company, the fund collected through right issue will be mobilize to repay Rs 650 million loan and to invest in Orbit Energy Pvt Ltd and Habitat Power Company.
