Rapti Hydro Rights Issue Manager Appointed for Shares
15th March 2026, Kathmandu
Rapti Hydro and General Construction Limited has reached a significant milestone in its capital-raising strategy by appointing Muktinath Capital Limited as the issue and sales manager for its upcoming rights share issuance.
Rapti Hydro Rights Issue
Following formal approvals from the company’s Board of Directors and the recent Annual General Meeting (AGM) held on Poush 29, the firm is now preparing to offer additional equity to its current shareholders. This move is part of an ongoing effort to strengthen the company’s capital base and provide essential liquidity for its various hydropower development projects across Nepal.
Rights Issue Structure and Rationale
The company is moving forward with a rights issue in the ratio of 1:0.4661. This means that for every 100 shares held, an investor will have the entitlement to subscribe to approximately 46.61 additional shares.
This issuance follows a recent aggressive capitalization strategy by the firm. In Asar 2082, the company successfully concluded a 1:1 rights issue. The decision to issue further rights shares so soon after the previous offering underscores the significant capital requirements necessary for the ongoing expansion of its infrastructure projects.
The funds raised through this issuance are earmarked for critical business operations, including:
Accelerating the development of active hydropower projects.
Infrastructure investments aimed at improving power evacuation.
Strategic debt management and repayment.
The Role of Muktinath Capital
As the appointed issue and sales manager, Muktinath Capital Limited assumes the responsibility of navigating the regulatory and logistical complexities of the issuance. Their role is central to ensuring that the rights issue proceeds transparently and in full compliance with the directives of the Securities Board of Nepal (SEBON).
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Key responsibilities for Muktinath Capital include:
Regulatory Liaison: Coordinating the approval process for the offer letter and prospectus with SEBON.
Investor Coordination: Managing the rights entitlement records to ensure that existing shareholders receive accurate subscription information.
Application Processing: Facilitating the distribution and collection of subscription applications through the C-ASBA system.
Why Rights Issues Matter for Hydropower
In the context of Nepal’s capital market, rights issues are a preferred instrument for hydropower companies. Unlike an Initial Public Offering (IPO) which brings in new shareholders, a rights issue allows current investors—who are already familiar with the company’s risk profile—to increase their stake.
Hydropower projects are capital-intensive and require long gestation periods before reaching commercial operations. By raising capital from existing shareholders, the company maintains its ownership structure while securing the necessary funds to move projects from the construction phase to generation. For shareholders, this represents a chance to increase their ownership in the company at a fixed price, potentially benefiting from future dividends once the projects begin full-scale electricity production.
Looking Ahead
Now that the sales manager is in place, Rapti Hydro and General Construction Limited is expected to finalize the timeline for the book closure date. Once the book closure is announced, the list of eligible shareholders will be finalized, and the subscription period will commence shortly thereafter.
Existing shareholders are advised to monitor official announcements regarding the book closure date, as only those listed on the company’s share register by that date will be eligible to exercise their rights to purchase the new shares.
For More: Rapti Hydro Rights Issue
