Super Mai Hydropower Dividend Bonus and Rights Share Declared
4th January 2026, Kathmandu
The board of directors of Super Mai Hydropower Limited (SMH) has officially announced a significant capital restructuring plan, including a 20 percent bonus share distribution and a massive 100 percent rights share issuance. The decision, taken during a board meeting on Magh 20, 2082 (February 3, 2026), highlights the company’s intent to strengthen its equity base while rewarding its existing shareholder base. This development follows the company’s strong financial performance in the first quarter of the fiscal year 2082/83, where it reported a net profit of 70.37 million rupees.
Super Mai Hydropower Dividend
The proposed dividend and rights issue are part of a broader trend within Nepal’s hydropower sector, where companies are increasingly using internal reserves and rights offerings to fund new projects or manage existing debt.
Details of the Dividend and Tax Adjustment
The dividend proposal is structured primarily to increase the company’s paid up capital through the capitalization of reserves.
Bonus Shares: 20 percent of the current paid up capital. Based on the existing capital of 53.50 crore rupees, the company will issue additional shares worth approximately 10.70 crore rupees.
Cash Dividend for Tax: A cash payout of 5.927 million rupees has been proposed. This is specifically allocated to cover the 5 percent dividend tax required on the bonus share distribution, ensuring that shareholders do not have to pay the tax from their own pockets.
This “Bonus + Tax Adjustment” model is a common practice in the Nepal Stock Exchange (NEPSE) to maintain high investor interest while keeping cash within the company for operational needs.
The 1:1 Rights Share Issuance Strategy
In a move that signals aggressive future growth, the board has also proposed a 100 percent rights share issuance (1:1 ratio). This means that for every single share a shareholder currently holds, they will be entitled to purchase one additional share at the par value of 100 rupees.
Strategic Objectives of the Rights Issue:
Capital Expansion: The rights issue will effectively double the company’s paid up capital to over 1.28 billion rupees (after the adjustment of bonus shares).
Project Reinvestment: Funds are expected to be channeled into the maintenance of the 7.8 MW Super Mai project in Ilam or used as equity for new hydropower licenses.
Debt Reduction: Increasing equity allows the company to reduce its debt-to-equity ratio, improving its credit rating and reducing interest expenses.
Regulatory Approval and Implementation Timeline
It is important for investors to note that the Super Mai Hydropower Dividend and rights issue are not yet finalized. The implementation must follow a strict regulatory path as mandated by the Electricity Regulatory Commission (ERC) and the Securities Board of Nepal (SEBON).
The process includes:
Advertisement
ERC Pre-Approval: The company must first receive a “No Objection” letter from the Electricity Regulatory Commission.
Annual General Meeting (AGM): Once the regulator gives the green light, the proposal must be presented and endorsed by shareholders at the company’s upcoming AGM.
SEBON Approval: For the rights share portion, the company must then apply to SEBON for the final issuance permit.
Book Closure: After all approvals, the bank will announce a “Book Closure Date.” Only those who hold shares before this date will be eligible for the bonus and rights shares.
Financial Health and Market Performance
Super Mai Hydropower Limited (SMH) has maintained a steady operational profile since its commercial operation date (COD) in 2075 BS. The company’s focus on the 7.8 MW project has provided a consistent revenue stream, which is now being leveraged for capital growth.
Key Financial Indicators (as of Q1 2082/83):
Paid up Capital: 53.50 crore rupees.
Net Profit (Q1): 70.37 million rupees.
Earning Per Share (EPS): Approximately 24.78 rupees (annualized).
Net Worth Per Share: 130.36 rupees.
Following the announcement, the SMH share price on NEPSE has seen significant activity as investors weigh the benefits of the 20 percent bonus against the capital requirement of the 100 percent rights issue.
Conclusion
The Super Mai Hydropower Dividend and rights issuance represent a bold move toward financial consolidation. By combining a 20 percent bonus with a 1:1 rights offering, the company is positioning itself as a growth-oriented player in Nepal’s energy market. For shareholders, this is an opportunity to significantly increase their holdings at par value, though it requires a 100 rupee investment for every rights share claimed. As the company awaits regulatory clearance, investors should keep a close watch on the upcoming AGM notice and the ERC’s decisions.
For More: Super Mai Hydropower Dividend
