Union Hydropower Rights Share: 100 Percent Issue Approved
20th April 2026, Kathmandu
In a major strategic move, Union Hydropower Limited has officially approved a proposal to issue 100 percent rights shares to its existing shareholders.
Union Hydropower Rights Share
This decision, finalized during a recent Special General Meeting, marks a turning point for the company as it seeks to double its paid up capital and fund ambitious new projects. For investors, this represents a unique opportunity to increase their stake in a growing energy firm at a structured and predictable ratio.
A rights issue is a way for a company to raise additional capital by offering new shares to its current shareholders. Under the newly approved plan, Union Hydropower will issue these shares in a 1:1 ratio. This means that for every single share a shareholder currently holds, they will be eligible to apply for one additional share. Typically, rights shares are issued at a face value of 100 per share, which often provides a significant advantage to existing investors compared to the prevailing market prices in the secondary market. By participating in this 100 percent issuance, shareholders can avoid ownership dilution while contributing to the company’s long term financial health.
However, the path from a meeting approval to the actual issuance involves several critical regulatory steps. Now that the proposal has been endorsed by the shareholders, Union Hydropower Limited will proceed to seek formal approvals from two major governing bodies. First, the plan must be vetted by the Electricity Regulatory Commission, which oversees the technical and financial feasibility of hydropower companies. Following this, the company must submit its prospectus to the Securities Board of Nepal for final approval. Only after these regulatory hurdles are cleared will the bank announce the book closure date and the official subscription period for the rights shares.
The primary objective behind this massive capital raise is clearly defined. Union Hydropower plans to utilize the funds generated from the rights issue to invest in new and promising energy projects. Specifically, the Special General Meeting has already greenlit an investment in the 23 MW Ayu Mayu Khola Hydropower Project. By diversifying its portfolio and increasing its total megawatt capacity, the company is positioning itself as a more significant player in Nepal’s national grid. This expansion is essential for the company to stay competitive and increase its revenue streams, which ultimately translates into better returns for its investors in the form of dividends.
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For the average investor, this rights offering is a call to evaluate their long term goals within the hydropower sector. Participating in a rights issue allows you to maintain your proportional ownership in the company while supporting a project that has the potential to generate electricity for decades. Since the funds are being directed toward a specific, high capacity project like the Ayu Mayu Khola, the transparency of the investment provides an added layer of confidence. It shows that the company is not just raising money for administrative costs but is focused on tangible asset creation and infrastructure development.
The broader context of Nepal’s hydropower industry makes this move particularly relevant. With the government emphasizing the transition to clean energy and the potential for cross border electricity trade with neighboring countries, the demand for power is at an all time high. Hydropower companies need substantial capital to manage the high upfront costs of construction and technology. Rights issues have become a favored method for these companies to strengthen their financial base without relying solely on high interest bank loans. By inviting shareholders to be partners in this growth, Union Hydropower is building a more resilient corporate structure.
As the company moves forward with the regulatory approval process, shareholders should stay informed through official notices and market updates. Once the Securities Board of Nepal gives the green light, the company will announce a book closure date. To be eligible for the 1:1 rights shares, an investor must hold the shares in their Demat account before this specific date. This emphasizes the importance of holding on to your shares if you believe in the long term vision of the company and its new projects.
In conclusion, the approval of the 100 percent rights share issuance by Union Hydropower Limited is a bold step toward a more sustainable and productive future. By targeting the 23 MW Ayu Mayu Khola Hydropower Project, the company is demonstrating its commitment to expanding Nepal’s renewable energy capacity. For the shareholders, it is an invitation to be a part of a 12 year or longer growth journey that promises to shape the country’s energy landscape. As the approval process continues into late 2083, this rights issue remains one of the most important developments for investors tracking the hydropower sector on the Nepal Stock Exchange. Keep your portfolios ready and stay updated on the upcoming subscription dates for this landmark 1:1 offering.
For More: Union Hydropower Rights Share
