Api to issue rights shares
KATHMANDU, OCTOBER 9
Api Power Co Ltd is issuing rights shares in the ratio 1:0.476 to its shareholders.
The offering totalling 5.67 million units will be open from October 30 and conclude on November 19.
The company is issuing the rights shares to generate capital for the construction of its third project, the Upper Chameliya Hydropower Project with 40MW capacity.
The project will generate 2.64 billion units of electricity annually. Of the electricity generated, 30 per cent will be generated in dry season and the remaining 70 per cent in the wet season.
In the first year, Rs 1.62 billion revenue will be earned and the revenue growth will be three per cent for eight years, as per a media release issued here today.
The total project cost is estimated at Rs 7.4 billion. The company will cover 30 per cent of the total cost by issuing rights shares to its shareholders in two stages. The rest 70 per cent is being financed by a consortium led by Himalayan Bank and comprising Employees Provident Fund, Rastriya Banijya Bank, Nepal Bank, Nepal Bangladesh Bank and Century Commercial Bank.
As of now, the firm’s paidup capital is Rs 1.19 billion.
After this issue, the paid-up capital will be Rs 1.75 billion.
According to the unaudited financial report, the total net worth of the company is Rs 1.36 billion, reserve fund/accumulated profit is Rs 170 million. The earnings per share stands at Rs 8.04.
Api completed the construction of 8.5MW Naugad Gadh Hydropower Project as its first project using the water of Naugad Gadh River. It has also been evacuating electricity to national grid by using the water of the same river from its second project — Upper Naugadh Gadh Hydropower Project.