KATHMANDU, August 20: The Upper Tamakoshi Hydropower is going to issue 100% equity shares. The 14th Annual General Meeting held in Kathmandu on Friday passed the proposal to issue 100 percent rights shares of the company.
Speaking at the meeting, the Managing Director of Nepal Electricity Authority (NEA), Kulman Ghising, submitted a special proposal for capital increase through rights shares based on the report received from the sub-committee after analyzing the overall financial of the company.
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According to him, there is a provision to give 70 percent loan and 30 percent discount capital. The company plans to issue right shares as the ratio of debt and capital could not be maintained due to various circumstances beyond control including the extension of the construction period.
MD Ghising said that since the construction of Rolwaling Driverson, Rolwaling River hydroelectric projects and Upper Tamakoshi project were completed with short-term loans, it is necessary to manage the finances to pay off those loans.
Ghising said that after the completion of the construction of the Upper Tamakoshi Hydropower Project, the goal of the NEA is to construct the Tamakoshi Fifth Project with a capacity of 900 megawatts through an 8 km tunnel. He said that the opportunity to invest in the company has also been ensured through the meeting of the Tamakoshi Hydropower Board of Directors.
Meanwhile, after the issue of right share, the paid-up capital will reach 20.58 billion rupees. At present, the share price of Upper Tamakoshi is less than Rs 500. Tamakoshi's 105.9 million shares have been listed in NEPSE.
