The Electricity Regulatory Commission (ERC) has given Sayapatri Hydropower Limited (SPHL) preliminary permission to issue rights shares in the proportion of 1:0.74, i.e, 1 share for every 0.74 shares of its paid-up capital.
Background
During its 8th Annual General Meeting (AGM) on 2082/03/21, the company had proposed a 1:1 rights issue. Following this decision, SPHL submitted an application to the ERC seeking regulatory approval.
However, as per the commission’s letter dated 2082/05/20, the approval has been granted for a reduced ratio of 1:0.74, instead of the originally planned 1:1.
Key Points
| Particulars | Details |
|---|---|
| Company | Sayapatri Hydropower Limited (SPHL) |
| Original Rights Proposal | 1:1 (One share for every share held) |
| Approved Rights Ratio | 1:0.74 (74 shares for every 100 held) |
| AGM Decision Date | 2082/03/21 |
| ERC Approval Date | 2082/05/20 |
| Status | Pre-approval received; official notice issued to stakeholders |
What This Means for Shareholders
The adjustment from 1:1 to 1:0.74 means shareholders will be entitled to receive 74 right shares for every 100 shares they currently hold. The company has formally notified stakeholders regarding this change and will move ahead with the rights issue process as per the new approval.
