Buddhabhumi Rights Share Offering Opened for Existing Shareholders, Expecting to Significantly impact the Company’s Capital Structure

5th April 2026, Kathmandu

The hydropower sector has gained fresh attention as Buddhabhumi Nepal Hydropower Company Limited has officially opened its rights share offering for existing shareholders.

Buddhabhumi Rights Share Offering

This move is expected to significantly impact the capital structure of the company while offering investors a strategic opportunity to expand their holdings at par value.

The rights share sale began on Chaitra 22, 2082, and will remain open until Baisakh 13, 2083, during standard banking hours. As the energy sector in Nepal seeks to deleverage and fund new projects, such rights offerings are becoming a primary tool for financial restructuring.

Overview of the Right Share Issue

Under this Right Share Issue Nepal hydropower offering, the company is issuing shares in a 1:1 ratio. This means that for every single share currently held by an investor, they are entitled to purchase one new share at the face value. This 100 percent rights offering is designed to double the equity base of the firm.

Key Highlights of the Offering:

• Total Shares Issued: 40,00,000 units
• Face Value per Share: 100
• Total Issue Size: 40 Crore
• Issuance Ratio: 1:1

This issuance is based on the current paid up capital of the company, which stands at 40 Crore. After the allotment process is completed and the 40 lakh units are integrated, the total paid up capital of Buddhabhumi Nepal Hydropower will reach 80 Crore.

Eligibility Criteria for Investors in 2082

Not all market participants are eligible to apply for this specific rights issue. To maintain the exclusivity of the offer for loyal backers, only those who were officially listed as shareholders before the book closure date of Magh 29, 2082, can participate through the Nepal Stock Exchange Limited (NEPSE).

If you purchased shares after this cut-off date, you will not see the rights option in your MeroShare portal. This mechanism ensures that the Right Share Issue Nepal offering rewards existing investors for their continued trust in the long-term vision of the company.

Application Timeline and Deadlines

The application window is clearly defined and must be adhered to strictly by all eligible shareholders:

• Opening Date: Chaitra 22, 2082
• Closing Date: Baisakh 13, 2083

Investors are strongly advised to apply within this period via the C-ASBA system or their respective bank branches to avoid missing out on the opportunity. Any unsubscribed shares after this deadline will typically be sold through a public auction at a later date.

Credit Rating and Risk Assessment

Before participating in the Right Share Issue Nepal offering, investors should look at the fundamental health of the issuer. Buddhabhumi Nepal Hydropower has received an IRN Double B Issuer Rating from Infomerics Credit Rating Nepal Limited.

This specific rating indicates a moderate level of risk regarding the ability of the company to meet its financial obligations on time. While the hydropower sector shows massive growth potential in 2026, the moderate risk rating suggests that investors should evaluate their own risk tolerance before doubling down on their investment.

Role of the Issue Manager

The rights share issuance is being professionally managed by NIC Asia Capital Limited, which has been appointed as the official issue and sales manager. The involvement of such an experienced capital manager helps ensure a smooth, transparent, and legally compliant process for all retail and institutional shareholders.

Why This Right Share Issue Matters for the Industry
The Right Share Issue Nepal hydropower offering by Buddhabhumi carries significant implications for both the internal dynamics of the company and the broader stock market:

For the Company:

Debt Reduction: The 40 Crore raised can be used to pay down high-interest bank loans.

Capital Growth: Increasing the paid up capital to 80 Crore improves the borrowing capacity for future expansions.

Project Support: Provides the necessary liquidity to maintain and optimize current power plant operations.

For the Investors:

Ownership Maintenance: Shareholders can maintain their percentage of ownership in the company without being diluted.

Face Value Advantage: Investors get to buy shares at 100 even if the market price is higher.

Long-term Accumulation: It allows for the averaging of the purchase cost for those who bought shares at higher market prices previously.

Key Considerations Before You Apply

While the allure of buying shares at 100 is strong, the Right Share Issue Nepal opportunity requires a balanced analysis. Investors should evaluate:

Financial Health: Review the latest quarterly reports to see the revenue trends of the company.

Sector Risks: Consider the impact of weather patterns and national grid connectivity on power production.

Market Liquidity: Understand that doubling the number of shares can sometimes put downward pressure on the market price in the short term.

Final Thoughts on the Buddhabhumi Rights Offer

The Right Share Issue Nepal initiative by Buddhabhumi Nepal Hydropower Company Limited marks an important development in the capital market of the country in April 2026. It provides a valuable path for existing shareholders to increase their stake while supporting the growth of the green energy sector.

However, given the moderate credit rating and the inherent risks of the hydropower industry, investors should approach this 1:1 offer with a balanced perspective. Conducting proper due diligence and ensuring your Demat and MeroShare accounts are ready before the Baisakh 13 deadline will ensure a smoother financial journey in the evolving Nepalese stock market.

For More: Buddhabhumi Rights Share Offering