Thirty companies listed on the Nepal Stock Exchange (NEPSE) have applied to the Securities Board of Nepal (SEBON) for approval to issue 401.47 million rights shares worth Rs 40.15 billion.
The applicants include 17 hydropower companies, three insurance companies, two investment companies, four manufacturing and processing companies, two hotel and tourism companies and one bank, among others.
Hydropower companies account for the largest share, with applications to issue 208.2 million shares worth approximately Rs 20.82 billion. Sahas Urja has sought approval for the largest hydropower rights issue, covering 45.738 million shares worth around Rs 4.57 billion.
Nepal Lube Oil has also applied to issue 1.457 million rights shares at a 1:2 ratio, equivalent to 200 percent of its existing paid-up capital.
Companies are increasingly seeking rights issues to finance new hydropower projects, repay loans and strengthen their financial positions.
