Chirkhwa Hydropower to Issue 4 Million Rights Shares Worth NPR 400 Million
25th May 2026, Kathmandu
Chirkhwa Hydropower Limited has formally announced its strategic plans to issue rights shares to its existing shareholders as a major part of its comprehensive capital expansion strategy. This upcoming equity offering is set to inject significant financial liquidity into the company enabling it to manage its long term capital requirements and strengthen its market presence. By offering additional equity to its current investor base the company aims to solidify its financial foundations while allowing existing stakeholders to scale up their investments.
Chirkhwa Hydropower Rights Shares
To ensure the smooth execution of this capital raising event the company has officially appointed RBB Merchant Banking Limited as the issue and sales manager. RBB Merchant Banking Limited which is a wholly owned subsidiary of Rastriya Banijya Bank brings extensive institutional experience and a strong operational track record to handle the public issue management registration and distribution processes smoothly.
Core Financial Details of the Rights Issuance
According to the corporate blueprint authorized by the board of directors a total of 4 million rights shares will be issued to the capital market. Each individual share will carry a standard face value of NPR 100 per unit. Through this massive equity liquidation event Chirkhwa Hydropower Limited aims to raise an additional capital amount of NPR 400 million from the primary market.
The fresh influx of capital will be structurally directed toward optimising the company financial position and supporting its ongoing operational activities. Hydropower development demands regular capital adjustments to handle maintenance project expansion costs and loan repayment responsibilities. This equity issue will provide the necessary buffer to reduce the financial risks commonly associated with heavy credit dependencies.
One to One Allocation Ratio for Existing Investors
The newly announced rights shares will be distributed to the existing shareholders in a clear one to one ratio. This structural framework means that current equity holders will be fully eligible to apply for one additional rights share for every single share they currently hold in their Demat accounts on the yet to be announced book closure date.
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This hundred percent rights offering gives existing investors a golden opportunity to maintain their proportional ownership stakes in Chirkhwa Hydropower Limited without facing dilution from external market buyers. For retail investors and institutional backers who believe in the long term revenue potential of the Nepalese clean energy sector this allocation model serves as a direct pathway to expand their equity portfolios at the base par value of NPR 100 which is generally far below the prevailing secondary market trading prices.
Formalization of the Issue Management Agreement
The formal agreement regarding the appointment of the issue and sales manager was officially signed between Chirkhwa Hydropower Limited and RBB Merchant Banking Limited on Jestha 6 2083. Top executive authorities from both corporate institutions participated in the signing ceremony confirming their operational roles responsibilities and regulatory compliance frameworks for the upcoming floatation.
Following this agreement RBB Merchant Banking Limited will take charge of preparing the formal rights issue prospectus filing necessary approval applications with the Securities Board of Nepal and coordinating with the central depository services. The merchant banker will also handle the compilation of shareholder records and manage the eventual share allotment process after the application window closes.
Strategic Role in Nepals Growing Energy Sector
The forthcoming rights issue is highly expected to strengthen the operational and financial capacity of Chirkhwa Hydropower Limited. It will directly support its ongoing and future energy development activities in the rapidly expanding clean energy landscape of Nepal. Nepal is currently experiencing a major transformation in its energy sector with cross border power trade opportunities and growing domestic electricity demand creating a highly favorable business climate for independent power producers.
By utilizing this internal capital raising mechanism Chirkhwa Hydropower Limited is positioning itself to capture new growth opportunities in the sector. Investors and market analysts are advised to keep a close watch on subsequent regulatory approvals and book closure announcements to ensure they can timely exercise their rights options. For further technical details regarding the specific application dates eligibility parameters and online application procedures shareholders can directly contact RBB Merchant Banking Limited or the corporate office of Chirkhwa Hydropower.
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