Samling Power Company Limited Right Share Issue Manager Appointment 2026
5th February 2026, Kathmandu
Samling Power Company Limited has officially moved forward with its capital expansion plan by appointing Nepal SBI Merchant Banking Limited as the issue and sales manager for its upcoming right share issuance. The formal agreement, finalized on Magh 21, 2082 (February 4, 2026), empowers Nepal SBI Merchant Banking to manage the regulatory, administrative, and technical aspects of the share sale. This appointment is a mandatory procedural requirement before the company can submit its final application to the Securities Board of Nepal (SEBON) for the public floatation.
Samling Power Right Share
The right share issue is aimed at optimizing the company’s capital structure and managing the debt incurred during the construction and recent repair of its primary hydropower asset.
Proposed Right Share Ratio and Issue Size
Following the decision made by the Board of Directors in late 2025, Samling Power has proposed to issue right shares in a 1:1 ratio. This means existing shareholders will be eligible to purchase one new share for every one share they currently hold.
Ratio: 1:1 (100 percent of existing paid up capital).
Current Paid up Capital: 500 million rupees (50 lakh units).
Right Issue Size: 500 million rupees (50 lakh units).
Post Issue Capital: 1 billion rupees (1 crore units).
The proposal was a key agenda during the company’s 7th Annual General Meeting (AGM) held on Poush 29, 2082. With the AGM’s endorsement, the company is now in the process of seeking final approval from the Electricity Regulatory Commission (ERC) and SEBON.
Operational Status of Mai Beni Hydropower Project (9.51 MW)
The capital raise comes at a time when Samling Power’s core asset, the 9.51 MW Mai Beni Hydropower Project in Ilam, has returned to full operational status. The project, which originally began commercial operations in Ashwin 2078, faced a major setback in late 2025 due to extreme weather conditions.
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Flood Impact: In Ashwin 2082 (October 2025), heavy rainfall and flooding in the Koshi Province caused significant damage to the project’s physical structures, leading to a complete halt in power generation.
Successful Resumption: After intensive repair and reconstruction work, the project resumed electricity generation on Poush 1, 2082 (mid December 2025).
Current Output: The plant is currently operating smoothly, contributing to the national grid and securing revenue through its “Take or Pay” Power Purchase Agreement (PPA) with the Nepal Electricity Authority.
Strategic Importance for Investors
For current shareholders, the 1:1 right issue provides an opportunity to maintain their proportional ownership in the company at the face value of 100 rupees per share. Given that the market price of Samling Power (SPC) has historically traded significantly above par value, the right offering is seen as a value addition for long term investors.
The funds raised through this issuance will likely be utilized to:
Reduce Long Term Debt: Paying off high interest loans taken for project construction and flood related repairs.
Improve Liquidity: Strengthening the company’s working capital to ensure smooth operations and maintenance.
Future Projects: Exploring new opportunities in the renewable energy sector as part of the company’s long term growth strategy.
Conclusion
The appointment of Nepal SBI Merchant Banking as the issue manager marks the beginning of the final phase of Samling Power’s 100 percent right share issuance. With the Mai Beni Hydropower Project back in operation and the AGM’s approval secured, the company is well positioned to strengthen its financial base. Investors should now keep a close watch on SEBON’s pipeline for the official announcement of the book closure date and the application window.
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