SEBON Greenlights Rapti Hydro’s 1:1 Right Share Issue: NPR 1.225B Capital Target
9th May 2025, Kathmandu
Rapti Hydro & General Construction Limited has received approval from the Securities Board of Nepal (SEBON) to issue 100% right shares. The green light came on Baisakh 25, allowing the company to move forward with its capital expansion plan.
SEBON Greenlights Rapti Hydro
The company will offer 6,127,938 right shares to its existing shareholders. Each share is priced at NPR 100. The issuance will follow a 1:1 ratio — one right share for every one currently held. This means investors holding shares today can apply for the same number of additional shares at face value.
Capital to double after rights issue
Rapti Hydro’s current paid-up capital stands at NPR 612.79 million. After the right share issuance, this figure will double. The total paid-up capital will reach NPR 1.225 billion.
This capital increase will support the company’s long-term goals. It may also allow Rapti Hydro to undertake new projects or strengthen its ongoing developments. More capital means more financial stability and flexibility for future investments in Nepal’s hydropower sector.
Muktinath Capital appointed as issue manager
To manage the right share issuance, Rapti Hydro has appointed Muktinath Capital Limited as the issue manager. Muktinath Capital will handle all procedural tasks related to the offering. It will ensure that shareholders get the necessary information and that the issuance complies with SEBON regulations.
This includes managing applications, allotments, and refunds. The issue manager also works with regulatory bodies and investors to ensure transparency and efficiency.
Right shares to raise over NPR 612 million
Through this rights offering, the company will raise approximately NPR 612.79 million from its shareholders. This is equal to the current paid-up capital. The funds will come entirely from existing shareholders, not the general public.
Rights shares are usually issued to fund new projects, repay debts, or improve operational capacity. In Rapti Hydro’s case, the capital raised could go toward enhancing hydropower infrastructure or supporting general construction activities.
No dilution of ownership for participating shareholders
Existing shareholders who subscribe to their full entitlement will maintain their ownership percentage in the company. This is a key benefit of the right issues. It allows a company to raise funds without reducing the control of its current owners.
However, if shareholders fail to exercise their rights, their ownership will be diluted. The unsubscribed shares could be sold to other investors or through auction as per SEBON rules.
Strong move amid growing energy demand
Rapti Hydro’s move comes at a time when Nepal’s demand for clean energy is increasing. The government is pushing hydropower as a sustainable source of electricity. Private sector companies like Rapti Hydro are key players in this mission.
By doubling its capital, the company signals its readiness to take on larger responsibilities in the energy market. It also indicates strong confidence in its future performance and profitability.
More details coming soon
Rapti Hydro is expected to announce further details about the right share issuance. This includes the book closure date, application process, and timeline. Shareholders should stay alert to official updates through the company and Muktinath Capital.
Until then, existing shareholders should prepare for the upcoming opportunity. Participating in the right share issuance could prove beneficial, especially if the company grows stronger post-capital expansion.
About Rapti Hydro & General Construction Ltd.
Rapti Hydro & General Construction Ltd. is a company engaged in hydropower development and construction services in Nepal. It is part of the broader private sector involvement in Nepal’s green energy transformation. The company aims to contribute to national development by providing sustainable infrastructure and energy solutions.
Final thoughts
The SEBON approval marks a major milestone for Rapti Hydro. Issuing 100% right shares shows the company’s commitment to growth and shareholder value. With the support of Muktinath Capital and its current investors, Rapti Hydro is set to raise significant funds without relying on external borrowing or public offerings.
The success of this rights offering could position the company as a stronger player in Nepal’s energy and infrastructure landscape.
For more: SEBON Greenlights Rapti Hydro
