Exciting developments are unfolding in Nepal’s energy sector as Liberty Energy Company Limited has received approval from the Securities Board of Nepal (SEBON) to issue 50% right shares. This move not only strengthens the company’s paid-up capital but also positions it for future growth in Nepal’s expanding hydropower segment.
Key Details of the Rights Issue
Liberty Energy is set to offer 7,500,000 units of right shares, representing 50% of its current paid-up capital, valued at Rs. 75 Crore. The rights issue will follow a 1:0.5 ratio, meaning existing shareholders can apply for one additional share for every two shares they currently hold. Currently, Liberty Energy’s paid-up capital stands at Rs. 1.50 Arba, which will increase to Rs. 2.25 Arba post-issuance.
Prabhu Capital Limited has been appointed as the issue manager, ensuring a smooth process for shareholders interested in participating in the offering.
Market Performance of Liberty Energy
As of today’s trading session, Liberty Energy’s share price closed at Rs. 278.00. While short-term fluctuations in the share price are possible, the new capital infusion is expected to support the company’s long-term growth, especially as it ramps up investments in Nepal’s hydropower sector.
Why Invest in Liberty Energy’s Right Shares?
The rights offering presents a unique opportunity for shareholders to increase their stake in one of Nepal’s fastest-growing sectors—hydropower. Here’s why this investment is worth considering:
- Capital Expansion: The new capital will allow Liberty Energy to fund new projects, increase production capacity, and strengthen its overall financial standing.
- Long-term Growth: The hydropower sector is a cornerstone of Nepal’s economic development, and Liberty Energy is well-positioned to benefit from government initiatives focused on renewable energy.
- Discounted Shares: Right shares are typically issued at a price lower than the market value, giving shareholders the chance to buy more shares at a discount.
SEBON’s Role in Regulating Rights Issues
The Securities Board of Nepal (SEBON) plays a crucial role in overseeing and approving rights issues. By ensuring companies follow strict guidelines, SEBON helps protect investors while promoting transparent equity issuance. With SEBON’s green light, Liberty Energy’s right shares are poised to attract strong investor interest.
Conclusion
Liberty Energy’s rights offering marks a significant milestone in its journey toward financial growth. As Nepal continues to focus on renewable energy, Liberty Energy’s expansion in the hydropower sector is expected to contribute to both the company’s success and the country’s energy goals.
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