Balephi Hydropower Limited has announced plans to issue rights shares as part of its strategy to increase paid-up capital. The company has convened its Annual General Meeting (AGM) to endorse the proposal, which is now scheduled to be held on January 22 in Gaushala, Kathmandu.

The AGM will table five agenda items, including ordinary proposals and a special proposal related to the rights issue, according to the company. The meeting had initially been scheduled for Tuesday but was postponed due to the lack of quorum, prompting the company to fix a new date.

Balephi Hydropower plans to issue 100 percent rights shares in a 1:1 ratio based on its existing paid-up capital of Rs 3.65 billion. The company had earlier proposed issuing 50 percent rights shares, but later revised the plan to match the full amount of its paid-up capital.

Funds raised from the rights issue will be used to invest in the 188-megawatt Surke Dudhkoshi Hydropower Project and to reduce outstanding bank loans, the company said.

Currently, the company is operating the 36-megawatt Upper Balefi ‘A’ Hydropower Project in Sindhupalchok district and has already entered commercial production.

In the first quarter of the current FY 2025/26, Balephi Hydropower recorded a net profit of approximately Rs 124.4 million.

For the purpose of the rights issue, the company had already completed its book closure on November 7. Only shareholders listed up to the day prior to the book closure will be eligible to apply for the rights shares.