Supermai Hydropower Limited (SMH) has received preliminary approval from the Electricity Regulatory Commission to issue a 1:0.9252 rights offering.
The hydropower company proposed issuing 59,40,000 rights shares worth Rs. 59.40 crores, increasing the paid-up capital to Rs. 1.22 arba. After adjusting for the proposed right shares, i.e., 3,081,262 units, the company's paid-up capital will increase to Rs. 1.23 arba. The company is issuing the right shares to repay its loan from Nabil Bank.
The company had initially proposed a 1:1 right share issue worth Rs. 64.20 crore, including Rs. 4.80 crore for machinery maintenance. However, approval was limited to the loan repayment purpose only, as the Commission does not permit rights shares for maintenance expenses. The decision was made at the Commission’s 322nd meeting on Ashwin 19, 2083.
The company will issue the rights shares to its shareholders only after the approval of SEBON. As of writing, SMH has an LTP of Rs. 527.00.
