Kathmandu. Arun Kabeli Power has received prior approval from the Electricity Regulatory Commission to issue right shares.
The commission has given prior approval to the company to issue 50 percent shares in the ratio of Rs 1:0.5 i.e. the current paid-up capital of Rs 3.89 billion. The company will now proceed with the process of issuing right shares worth Rs 1,94,79,71,050 to its shareholders.
The commission has put forward a condition that the company should use Rs 100 from the amount received as right shares to repay the loan taken for the construction of the Kabeli B-1 hydropower project. The commission has also put forward another condition that the remaining amount of Rs 94.79 crore should be invested in Kabeli Energy, the promoter company of the 37.6 MW Kabeli A Hydropower Project, with documents to be confirmed within 15 days.
According to the Commission, if the company has to obtain consent from the level issuing the license and other levels as per the prevailing law, it will have to inform the Commission about it.
