Samling Power to Issue Rights Shares, Calls Annual General Meeting

23rd December 2025, Kathmandu

Samling Power Company Limited has officially communicated its decision to hold its seventh annual general meeting. The meeting is set to address one of the most anticipated corporate actions for the company which is the issuance of rights shares in a one to one ratio. According to the formal notice published by the company the assembly will take place on Poush 29 2082. The chosen venue for this important gathering is the Kupondole Banquet located in Lalitpur and the proceedings are scheduled to commence at 10:00 AM. This meeting is expected to draw a significant number of shareholders as the company moves toward a major capital expansion.

Samling Power Rights Shares

The primary highlight of the seventh annual general meeting is the special proposal to issue rights shares. The board of directors has proposed a one to one rights issue which means that for every single share currently held by a shareholder they will be eligible to purchase one additional share at the face value of one hundred Nepalese rupees. This issuance will effectively double the paid up capital of Samling Power Company Limited. Currently the company has a paid up capital of five hundred million rupees. Upon the successful completion and allotment of these rights shares the capital base will expand to one billion rupees.

Such a massive increase in capital is often aimed at managing the financial health of a hydropower company. In the Nepalese context hydropower developers frequently use the proceeds from rights issues to pay down expensive bank loans or to fund the maintenance and repair of their existing projects. For Samling Power Company this capital hike is particularly relevant given the recent operational challenges it has faced due to environmental factors. The meeting will also see the election of two directors from the group of ordinary shareholders which is an essential part of the company commitment to inclusive corporate governance.

OPERATIONAL RECOVERY AND THE MAI BENI HYDROPOWER PROJECT

Samling Power Company Limited is the developer and operator of the Mai Beni Hydropower Project. This project is a run of river type plant located on the Mai River in the Ilam district of eastern Nepal. It has an installed capacity of nine point five one megawatts. While the project has been a steady contributor to the national grid it recently suffered a setback due to extreme weather conditions. Between Ashwin 17 and Ashwin 19 2082 the project site experienced unexpected and heavy flooding that damaged several physical structures. This resulted in a complete halt of electricity generation for several weeks.

However the management has demonstrated significant agility in addressing these issues. Following intensive repair and reconstruction work the company successfully resumed power generation on Poush 1 2082. The resumption of operations at 6:50 PM on that day marked a critical turning point for the company and its investors. The ability to bring the nine point five one megawatt plant back online so quickly after natural disaster damage has restored a sense of confidence among the stakeholders. The current electricity production is reported to be running smoothly and is being evacuated to the Godak substation.

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FINANCIAL PERFORMANCE AND RECENT PROFITABILITY TRENDS

The financial health of Samling Power Company Limited has shown signs of a strong recovery in the most recent quarters. While the company recorded a net loss of over thirty seven million rupees in the fiscal year 2080 2081 the figures for the first quarter of the fiscal year 2082 2083 are much more encouraging. The company recently posted a net profit of twenty one point seven eight million rupees for the first quarter. This profit is a direct result of the consistent electricity sales prior to the flood damage and the efficient management of operational costs.

Investors often look at the net asset value and earnings per share before deciding to participate in a rights issue. As of the latest reports the book value per share of Samling Power stands at approximately one hundred seven rupees. Since the rights shares will be offered at the par value of one hundred rupees shareholders are essentially getting the opportunity to increase their stake at a price lower than the current intrinsic book value. This discount is a key incentive for the existing investors to subscribe to the upcoming offer.

BOOK CLOSURE AND SHAREHOLDER ELIGIBILITY

To determine who is eligible to attend the seventh annual general meeting and subscribe to the proposed one to one rights shares the company has announced a book closure date. The share register will be closed for one day on Poush 16 2082. This means that only those investors who have purchased and held the shares of the company until Poush 15 will be recorded in the register as eligible participants. Investors who buy shares after this date will not be entitled to the rights shares or the right to vote at the upcoming assembly.

This book closure period is a critical window for potential investors who wish to participate in the growth story of Samling Power. Often the market price of a hydropower stock experiences adjustments after the book closure to reflect the dilution caused by a rights issue. Professional analysts suggest that shareholders should carefully evaluate the long term debt reduction plan of the company before making a final decision on their investment.

CONCLUSION AND FUTURE OUTLOOK

In conclusion the decision of Samling Power Company Limited to call its seventh annual general meeting and propose a hundred percent rights issue marks a strategic phase in its corporate journey. By doubling its capital the company is positioning itself to be more financially resilient against the risks inherent in the hydropower sector. With the Mai Beni project back in full operation and the first quarter profits showing an upward trend the outlook for the remainder of the fiscal year 2082 2083 appears positive. The participation of shareholders in the meeting on Poush 29 at Kupondole Banquet will be a testament to their trust in the vision of the company.

For More: Samling Power Rights Shares