Modi Energy Receives Preliminary Approval for Rights Issue, Plans to Raise NPR 2.61 Billion

Modi Energy Limited, the promoter of the 20 MW Lower Modi Khola Hydropower Project, has received preliminary approval from the Department of Electricity Development to issue right shares. The company plans to issue right shares in the ratio of 1:0.90029 based on its existing paid-up capital.

On Thursday, the company informed the Nepal Stock Exchange through an official letter that it had obtained approval from the regulatory authority. According to the approval letter dated Magh 21, 2082 (BS), the department granted preliminary consent for the rights issue.

Currently, the company’s paid-up capital stands at NPR 2.90 billion. Based on the approved ratio, Modi Energy is preparing to issue right shares worth approximately NPR 2.61 billion.

For final approval, the company must now apply to the Nepal Securities Board. Only after receiving approval from the board will the company be able to fix the issuance date and announce the book closure.

Operating the Lower Modi Khola Hydropower Project in Parbat district, the company aims to raise substantial capital through the rights issue to reduce its debt burden and strengthen its financial management. This initiative is expected to enhance the company’s long-term financial stability.