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Upper Hewakhola Hydropower (UHEWA) Announces 100% Rights Offering to Shareholders
Upper Hewakhola Hydropower Company Limited (UHEWA) has revealed plans for a 100% rights offering to its existing shareholders. This decision was made during the company's board meeting on February 19, 2025. The offering will be conducted at a 1:1 ratio, allowing shareholders to purchase one additional share for each share they currently own.
Each share will be issued at a face value of NPR 100, resulting in a total of 5 million new shares and raising NPR 500 million in capital. Once the rights issue is completed, UHEWA’s paid-up capital will double to NPR 1 billion, strengthening its financial foundation.
Objectives of the Rights Offering
The funds raised through this rights issue will be utilised for two primary purposes:
Investment in the 15 MW Sisuwa Khola Hydroelectric Project
- The Sisuwa Khola Hydroelectric Project is being developed by Matribhumi Hydropower Development Company.
- The investment will support Nepal’s growing demand for renewable energy.
Repayment of Existing Loans
- UHEWA plans to reduce its financial liabilities by paying off loans from banks and financial institutions.
- Strengthening the company’s financial position will improve operational efficiency.
Approval Process and Next Steps
The rights issue proposal is subject to approval at the upcoming Annual General Meeting (AGM) or a specially convened General Meeting. If approved, the company will proceed with the necessary regulatory steps to issue the new shares.
Impact on Shareholders and the Hydropower Sector
This strategic financial move will have several benefits:
- Increased Capital Base: The company's paid-up capital will double, providing a strong foundation for future projects.
- Growth in Renewable Energy: Investment in new hydropower projects will contribute to Nepal’s clean energy sector.
- Improved Financial Stability: Loan repayments will reduce financial burdens, enabling long-term sustainability.
- Potential for Higher Returns: As the company expands, shareholders could benefit from future growth and profitability.
Nepal’s Hydropower Expansion and UHEWA’s Role
Nepal’s hydropower sector is a key driver of economic development. With an abundance of water resources, the country has immense potential to expand its renewable energy production. Companies like UHEWA play a crucial role in harnessing hydropower potential to meet growing energy demands and reduce reliance on imported energy.
The Sisuwa Khola Hydroelectric Project is a step toward energy independence, ensuring sustainable power generation for both domestic use and potential exports.
What’s Next for UHEWA?
After the approval of the rights issue, UHEWA will:
📌 Finalize regulatory approvals for the share issuance.
📌 Distribute rights shares to eligible shareholders.
📌 Allocate funds for the hydropower project and debt repayment.
📌 Monitor project implementation to ensure timely progress.
UHEWA’s 100% rights offering is a strategic move to strengthen its financial position, expand hydropower investments, and contribute to Nepal’s renewable energy future. With this initiative, the company aims to enhance shareholder value while playing a pivotal role in the country’s energy sector growth.
Stay tuned for further updates on UHEWA’s rights issue and Nepal’s evolving hydropower landscape!
