Maya Khola Hydropower rights share issuance
17th February 2026, Kathmandu
The landscape of Nepals renewable energy sector has reached a new chapter as Maya Khola Hydropower Limited officially initiates the process for its highly anticipated rights share offering. In a formal ceremony held in mid February 2026, or Falgun 2082 according to the Bikram Sambat calendar, the company signed a comprehensive agreement with Citizens Capital Limited to serve as the issue and sales manager. This move is a strategic attempt to fortify the company’s capital base and provide the necessary liquidity for its ongoing operational requirements. With the hydropower sector in Nepal witnessing a shift toward capital restructuring, Maya Khola’s decision to issue 10 million units of rights shares is being closely watched by both institutional and retail investors.
Maya Khola Hydropower
Maya Khola Hydropower Limited, which operates the 14.9 megawatt Maya Khola Hydropower Project in the Sankhuwasabha district, has demonstrated significant operational progress since its project began commercial electricity generation in Ashar 2080. The run of river project, situated on the Maya Khola river, utilizes a gross head of over 437 meters to generate electricity that is supplied directly to the Nepal Electricity Authority. The project was initially envisioned as a 5 megawatt plant but was later upgraded to nearly 15 megawatts to maximize the potential of the local water resources. The successful operation of this plant has provided a steady stream of revenue for the company, which is now looking to optimize its financial structure through equity infusion.
The current rights share proposal involves the issuance of 10 million units of shares at a par value of 100 rupees per share. This 1,000 million rupee capital raise is intended to assist the company in several key areas, including the repayment of high interest bank loans and the potential funding of future maintenance or expansion projects. As an existing listed company on the Nepal Stock Exchange under the symbol MKHC, Maya Khola is following a path common to many successful energy firms in Nepal. By offering rights shares, the company allows its current shareholders to maintain their proportional ownership in the business, preventing dilution while rewarding long term backers with the chance to buy shares at par value, which is currently well below the secondary market price.
Financially, Maya Khola Hydropower has shown signs of stability in its recent quarterly reports. For the second quarter of the fiscal year 2082/83, the company reported an annualized earnings per share of approximately 8.76 rupees. While the hydropower sector is often characterized by high initial debt and long gestation periods, the consistent revenue from power sales to the NEA has helped the company manage its operating expenses. The book value of the company currently stands at approximately 64.61 rupees per share. The upcoming rights issue is expected to provide the necessary buffer to improve these metrics by reducing the interest burden on the company’s balance sheet.
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The role of Citizens Capital Limited in this process is multifaceted. As the designated issue manager, Citizens Capital will be responsible for preparing the necessary documentation for the Securities Board of Nepal (SEBON). This includes the preparation of the prospectus, coordinating with the Nepal Stock Exchange for the book closure date, and managing the entire application and allotment process once regulatory clearance is obtained. Given the current regulatory environment in Nepal, where SEBON has been stringent about capital adequacy and disclosure requirements, the appointment of an experienced merchant bank like Citizens Capital is a vital step in ensuring a smooth and compliant issuance.
Another significant development for Maya Khola investors is the recent expiration of the lock in period for promoter and local shares. On Magh 25, 2082, approximately 7.64 million units of shares held by promoters, local residents of the project affected area, and employees became eligible for trading on the secondary market. This increase in the float of tradable shares, combined with the news of the rights offering, has led to increased volume in the MKHC stock. Investors should note that while the rights issue offers an opportunity to buy at par, it also requires a commitment of new capital. The market price of MKHC has recently fluctuated between 320 and 350 rupees, making the 100 rupee rights offer look attractive on paper, provided the company continues to meet its generation targets.
The success of the Maya Khola rights issuance will depend largely on the timing of the SEBON approval and the overall sentiment of the Nepal Stock Exchange. As the country moves toward increasing its total installed capacity to 10,000 megawatts in the next decade, companies like Maya Khola play a crucial role in reaching these national energy goals. The company’s focus on the Sankhuwasabha district, a region known for its high hydropower potential, positions it well for future regional development.
In conclusion, the appointment of Citizens Capital as the issue manager marks the official countdown to Maya Khola Hydropower Limiteds capital expansion. With 10 million units of rights shares on the horizon, existing shareholders have a significant event to prepare for in the coming months. While the operational performance of the 14.9 megawatt project remains the core driver of value, the successful execution of this rights offering will provide the financial flexibility needed to navigate the challenges of the energy market. Stakeholders are advised to keep a close eye on the SEBON pipeline and official company notices for the announcement of the rights ratio and the specific book closure date.
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