Upper Syange Hydropower To Issue 100 Percent Rights Shares And Appoints NIMB Ace Capital As Issue Manager
4th August 2026, Kathmandu
Upper Syange Hydropower Limited has officially moved forward with its strategic capital expansion plan by appointing NIMB Ace Capital Limited as the issue and sales manager for its upcoming one-to-one rights share offering.
Upper Syange Rights Shares Issue Announced
The decision to issue one hundred percent rights shares marks a major financial milestone for the company as it seeks to strengthen its balance sheet and fulfill ongoing operational requirements in the hydropower sector of Nepal.
Strategic Capital Expansion Plan Approved by Shareholders
The Board of Directors and executive leadership of Upper Syange Hydropower Limited received formal approval from shareholders to issue rights shares in a direct one-to-one ratio during the Ninth Annual General Meeting conducted on October 9.
Under this approved framework, eligible existing shareholders will have the right to subscribe to one new share for every single share they currently hold in the company.
The expansion strategy designed by the board aims to double the paid-up capital base of the company while providing existing equity holders an opportunity to maintain their proportional ownership position.
Appointment of NIMB Ace Capital as Issue Manager
In execution of the decision made by shareholders, the Board of Directors of Upper Syange Hydropower convened a formal meeting on Shrawan 14 to finalize operational aspects of the rights offering.
During the executive meeting, the board formally resolved to appoint NIMB Ace Capital Limited as the official issue and sales manager to oversee all regulatory, legal, and administrative tasks associated with the rights share issuance.
NIMB Ace Capital Limited is recognized as a leading merchant banker in Nepal with extensive experience in managing initial public offerings, rights share issues, corporate advisory services, and underwriting frameworks across financial markets.
Details of Paid-Up Capital Base and Capital Doubling
Upper Syange Hydropower Limited currently maintains an established paid-up capital base of NPR 220 million.
The proposed one-to-one rights share issuance will match this capital base cent percent by offering an additional NPR 220 million worth of equity shares to existing shareholders.
Upon the successful completion of the rights offering, the total paid-up capital of the hydropower development company will reach NPR 440 million.
The direct injection of primary capital will substantially improve the leverage ratios of the company, lower financial costs, and assist in debt servicing obligations related to project construction and grid connection.
Regulatory Approvals and Step-by-Step Timeline
Following the executive appointment of NIMB Ace Capital Limited, Upper Syange Hydropower Limited will proceed with preparing the comprehensive prospectus and official documentation.
The hydropower company and the appointed merchant banker will submit formal applications to the Electricity Regulatory Commission for sectoral clearance and necessary recommendations.
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Subsequently, the final prospectus and issuance proposal will be filed with the Securities Board of Nepal, the apex capital market regulator in the country, for regulatory approval and registration.
Once registration and approval from the Securities Board of Nepal are successfully secured, the company will declare the official book closure date to determine eligible shareholders entitled to apply for the rights shares.
Importance of Rights Share Capital in Hydropower Development
Hydropower infrastructure projects require substantial initial capital investment, ongoing maintenance reserves, and efficient debt management operations to deliver sustainable returns.
Issuing rights shares allows hydropower companies to raise low-cost domestic capital directly from existing investors without incurring high borrowing costs from commercial banks.
By strengthening capital reserves through a rights issue, Upper Syange Hydropower can pay down existing high-interest debt, improve debt-to-equity ratios, and enhance overall project viability.
Enhanced capital structures also position hydropower developers favorably for expanding energy output, improving transmission capacity, and investing in potential future hydro energy projects across Nepal.
Guidance for Investors and Existing Shareholders
Existing shareholders in Upper Syange Hydropower Limited are advised to monitor official announcements from the company and NIMB Ace Capital Limited regarding regulatory approvals and subscription dates.
Investors will be eligible to purchase the newly issued rights shares equivalent to their present equity holdings provided their names are registered in the share register prior to the book closure date.
The company will publish a detailed subscription notice outlining application dates, payment procedures, designated bank collection centers, and digital application options through the C-ASBA system enabled by CDS and Clearing Limited.
Interested equity investors seeking additional shares can also benefit if unsubscribed rights shares are made available through a subsequent public auction process managed by NIMB Ace Capital.
Summary of Upper Syange Hydropower Rights Issue Details
- Issuing Entity Name: Upper Syange Hydropower Limited
- Issue Ratio: 1 to 1 or 100 percent rights offering
- Appointed Merchant Banker: NIMB Ace Capital Limited
- Existing Paid-Up Capital: NPR 220 Million
- Capital Addition Through Rights: NPR 220 Million
- Target Post-Issue Paid-Up Capital: NPR 440 Million
- Approval Status: AGM Approved and Board Executed
- Regulatory Approval Requirement: Electricity Regulatory Commission and Securities Board of Nepal
Outlook for Upper Syange Hydropower Limited
The formal execution of the rights share plan demonstrates the operational commitment of Upper Syange Hydropower Limited toward maintaining financial discipline and transparent corporate governance.
With NIMB Ace Capital Limited managing the technical, administrative, and capital market requirements, the hydropower enterprise is positioned to navigate regulatory approvals efficiently.
The capital raised through this rights issue will directly enhance balance sheet resilience, enable efficient debt management, and support long-term shareholder value creation in the hydropower sector of Nepal.
