Himalayan Power Rights Issue Approved by SEBON
10th March 2026, Kathmandu
Himalayan Power Partner Limited has achieved a significant milestone with the formal approval of its rights issue by the Securities Board of Nepal (SEBON). Granted on Falgun 25, 2082, this regulatory clearance paves the way for the company to issue 5,327,085 units of rights shares. This strategic move is designed to bolster the company’s capital structure and provide current shareholders with a direct pathway to increase their equity participation in the firm at a face value of Rs 100 per share.
Himalayan Power Rights Issue
For existing investors, the 50 percent rights issue means that for every two shares currently held, they are eligible to purchase one additional share. This ratio, while increasing the total number of shares in the market, allows shareholders to maintain their proportional ownership in the company if they choose to exercise their rights. Such offerings are a standard capital-raising tool for hydropower companies in Nepal, which often require significant financial resources for project development, capacity upgrades, and the maintenance of complex energy infrastructure.
Global IME Capital Limited has been appointed as the issue and sales manager for this offering. In this capacity, they are responsible for overseeing the administrative and regulatory aspects of the issuance, including the distribution of rights documents and the management of the application process. Shareholders are advised to stay tuned for the upcoming announcement of the record date, which will determine the eligibility of investors to participate in this offering. Being listed on the company’s books as of this record date is mandatory for those wishing to exercise their rights.
The financial rationale behind this rights issue is rooted in the company’s need for capital efficiency. By raising funds directly from existing shareholders at face value, Himalayan Power Partner Limited can potentially reduce the cost of capital compared to traditional debt financing. For the individual investor, the decision to participate often hinges on the company’s current market price relative to the face value of Rs 100, as well as their long-term outlook for the hydropower sector in Nepal.
As the hydropower industry continues to serve as a cornerstone of Nepal’s economic development, the capital generated through such rights issues is crucial for the sector’s sustainability. The ability to tap into domestic capital through the Nepal Stock Exchange highlights the growing maturity of the local financial market. For investors, the following points are essential to monitor as the process moves into its next phase:
Publication of the official rights offering schedule, including opening and closing dates.
Advertisement
Confirmation of the record date, which is the cutoff for eligibility.
Detailed instructions regarding the application process, which will be facilitated through ASBA (Applications Supported by Blocked Amount) services.
Procedures for those who may wish to renounce their rights if they choose not to exercise them.
Investors interested in participating should maintain regular contact with official disclosures from Himalayan Power Partner Limited or updates from Global IME Capital Limited. As the market anticipates the opening of the application window, shareholders are encouraged to review their portfolio and determine their strategy regarding the subscription of these new shares.
In summary, the approval of the Himalayan Power rights issue is a positive development that offers existing shareholders a structured opportunity to invest further in the company’s growth. With Global IME Capital managing the process, the issuance is expected to proceed in accordance with standard regulatory protocols, providing a transparent and efficient mechanism for capital expansion in one of Nepal’s most critical economic sectors.
For More: Himalayan Power Rights Issue
