Api Power Company Limited (API) has successfully conducted Special General Meeting (SGM) yesterday (Chaitra 28, 2073). The company has approved the issuance of 200% right shares on its current paid up capital of Rs 1.05 arba.
API’s SGM has also endorsed financial plan for the proceeds raised through the right shares. Out of the total Rs 2.10 arba raised from the right issue, Rs 1.10 arba will be used to develop various solar power projects and Rs 1 arba will be used for Trishuli Galchhi project currently being developed by Siddhakali Power Limited.
Earlier, its SGM held on Chaitra 27, 2072 had also endorsed the issuance of 200% right share on its capital of Rs 1 arba. However, SEBON’s directive on Mangsir 21, 2073 had barred non-BFIs and non-insurance companies from issuing further shares or right shares before 2 years of their IPO issue. The same directive had also made it mandatory to endorse the detailed financial plan as to how the amount raised from right or FPO issue will be used. That is why, API had called for this SGM yesterday – said a press statement issued by the company.
Api Power Company had floated its IPO on Ashad 11, 2072 and the company has made it clear that it will receive the approval to issue 1:2 right shares after Ashad 11, 2074. Its currently in-progress 18MW solar project and 8MW Upper Naugarh projects are scheduled to be completed within this fiscal year. With substantial increase in profit this year, it will be able to provide more dividend to its shareholders than last year, added the press release.
Source: The Sharesansar