Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The Securities Board of Nepal (SEBON) has granted approval to Himalayan Urja Bikas Company (HUBC) to issue right shares. This marks the first time in six months that the sector’s regulator has permitted a listed company to issue primary shares, following a prolonged delay due to the absence of an appointed SEBON chairperson.
HUBC will issue right shares in a 1:1 ratio, valued at Rs 919.9 million. Post-issuance, the company’s paid-up capital will increase to Rs 1.98 billion. Nabil Investment Banking has been appointed as the issue manager for this process.
HUBC is currently engaged in constructing two hydropower projects: the 12 MW Upallo Khimti and the 7 MW Upper Khimti, located in the Ramechhap and Dolakha districts.
Since the retirement of former SEBON Chairperson Ramesh Hamal in January, the board has been without a leader to make crucial decisions. This leadership vacuum has stalled significant decisions, including the approval for the issuance of primary shares.
A committee formed to recommend nominees for the SEBON chairperson position had shortlisted five candidates out of 19 applicants: Santosh Shrestha, Muktinath Shrestha, Navaraj Adhikari, Krishna Bahadur Karki, and Chiranjibi Chapagain. However, the appointment process hit a snag when three candidates did not appear for their interviews.
Political collusion has been cited as a reason for the delay in appointing a new SEBON chairperson, with vested interests allegedly influencing the process, particularly regarding the licensing of a new stock exchange platform.
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