United Modi Hydropower Dividend Approved as Company Announces Major Expansion Plans
11th May 2026, Kathmandu
United Modi Hydropower Limited has successfully concluded its 12th Annual General Meeting in Kathmandu, marking a significant milestone for the company and its investors.
United Modi Hydropower Dividend
Chaired by Navin Silwal, the assembly brought together shareholders to review the performance of the past fiscal year and chart a new course for the future. The primary highlight of the event was the formal approval of the United Modi Hydropower Dividend, which rewards loyal investors while the company prepares for a massive structural transformation. This move comes at a time when the energy sector in Nepal is looking toward consolidation and diversified investment strategies.
Shareholders Approve Bonus Shares and Cash Dividend
During the meeting held at the Kalimati Banquet, the board’s proposal for a total dividend of 7.36842 percent was passed with significant support. The United Modi Hydropower Dividend is structured to include 7 percent in the form of bonus shares and a 0.36842 percent cash dividend intended to cover the tax obligations of the shareholders. This balanced approach allows the company to retain capital for future projects while ensuring that investors receive a tangible return on their holdings. The issuance of bonus shares also serves to increase the company’s paid up capital, which is a vital step in its plan to scale operations.
Election of New Board Members and Financial Approval
The 12th AGM served as an important platform for corporate governance, as shareholders elected Renuka Pandey and Prapti Adhikari to the Board of Directors. Their induction is expected to bring fresh perspectives to the leadership team as the company navigates its next phase of growth. Additionally, the meeting saw the unanimous approval of the annual report and the audited financial statements for the fiscal year 2081/82. These documents, including the balance sheet, profit and loss account, and cash flow statement, reflect the steady operational status of the company’s existing assets and its commitment to financial transparency.
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Transformation into a Holding Company Structure
A major development announced during the special resolutions was the plan to transform United Modi Hydropower into a holding company. This structural change is designed to facilitate easier investment into other hydropower projects and potential investment sectors. To support this transition, the shareholders agreed to a name change and authorized the necessary amendments to the memorandum and articles of association. This strategic pivot indicates that the company is no longer focusing solely on its own generation projects but is looking to become a broader investment vehicle within the Nepalese energy landscape.
Capital Increase and Rights Share Proposals
To fund these ambitious expansion goals, the AGM approved proposals to increase the company’s issued capital. Furthermore, the board has been authorized to proceed with the issuance of rights shares in the near future. The management has been granted full authority to coordinate with various regulatory bodies, including the Electricity Regulatory Commission, the Nepal Securities Board, and the Nepal Stock Exchange, to complete the necessary paperwork. These steps are essential for raising the liquidity required to acquire interests in new energy ventures and infrastructure developments.
Operational Success of Lower Modi 1 Project
The foundation of the company’s ability to provide the United Modi Hydropower Dividend remains its consistent operational performance. United Modi Hydropower Limited has been commercially operating the 10 MW Lower Modi 1 Hydropower Project in Parbat District since late 2069. Located in Kushma Municipality, the project has been a reliable source of energy for the national grid for over a decade. The steady revenue generated from this project provides the financial backbone necessary for the company to explore new investment horizons and continue its tradition of providing returns to its shareholders.
Looking Ahead Growth and Sustainability
The feedback from shareholders at the AGM was overwhelmingly positive, with many expressing satisfaction with the dividend distribution. They encouraged the management to maintain this momentum and continue seeking opportunities that add value to the company. As United Modi Hydropower transitions into its new role as a holding company, its focus will likely remain on balancing sustainable energy production with strategic capital investments. With a strong board and a clear mandate from its investors, the company is well positioned to remain a key player in the development of Nepal’s water resources and the broader financial market.
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