Api Power’s Right Shares to Construct Trisuli Galchi

September 14: Api Power Company is floating 1:2 right shares to construct 75MW Trishuli Galchi Hydropower project. “The proposal of right shares has already been endorsed by the annual general meeting of the last mid-April,” said Mahendra Neupane, Project Manager of Api adding, “As soon as SEBON approves the floatation, the right shares will be issued.”

“SEBON has asked for one month period to amend the regulations regarding shares issuance, thus the right shares will be issued after one month only,” he stated. “We were planning to issue the right shares on September 17 and complete the constructions of the Galchi Hydro within next 4 years. But now it has been delayed by 1 month. Although, we can possibly recover the month period within the four years. However, if it gets delayed for more time, then the construction period of the project might be extended.”

Siddhakali Power, the developer of the project will be investing 10 percent of total Rs 14 billion investments. Similarly, the company will be raising 10 percent of investment from share issuance to local of affected areas. Likewise, the company had planned to raise remaining 80 percent through issuing right shares of Api Hydro power. However, the board has recommended raising capital through initial public offering (IPO) as well. “Thus, the company is preparing to raise the capital through 15 percent IPO and 65 percent through right shares of Api Hydropower,” informed Neupane. He believed to raise nearly Rs 2 billion through the right shares.