Bindhyabasini Hydropower Calls 10th AGM for Kartik 18; Proposes 5% Bonus and 1:1 Right Shares

Bindhyabasini Hydropower Development Company Limited has proposed issuing a 5 percent bonus share followed by a 100 percent (1:1) right share issuance to its existing shareholders. To endorse these dividend and capital expansion proposals, the company has convened its 10th Annual General Meeting (AGM) for Kartik 18.

As per the board's recommendation, the company will distribute a 5 percent bonus share on its current paid-up capital, accompanied by a 0.2632 percent cash dividend for tax requirements. Following the capitalization of the bonus shares, the AGM will vote to approve a 1:1 right share issue. If endorsed, shareholders will be eligible to purchase one additional share for every single share currently held in their portfolio.

The assembly is scheduled to commence at 9:30 AM at Anmol Banquet in Sankhamul, Kathmandu. Shareholders will deliberate on and approve the annual board report and audited financial statements for the fiscal year 2082/83. The meeting will also appoint a statutory auditor for the fiscal year 2083/84, fix their remuneration, endorse the issuance of debentures convertible into equity, amend the company's Memorandum of Association, and ratify the board's prior decisions regarding business operations, investments, bank loans, and corporate guarantees.

To establish shareholder eligibility for the dividend and general assembly, the company has declared a book closure date on Kartik 10. Consequently, investors holding shares traded on the Nepal Stock Exchange (NEPSE) up to Kartik 9 will be entitled to the proposed dividend and eligible to attend the AGM.

Bindhyabasini Hydropower's dual proposal of a bonus share followed by a 1:1 right issue reflects a aggressive capital restructuring strategy aimed at broadening its equity base. By sequencing the 5 percent bonus distribution prior to the right issue, the company effectively increases the overall pool of eligible shares before applying the 1:1 ratio, maximizing the total capital raised from existing shareholders.

The secondary agendas—specifically the proposal to issue debentures convertible into ordinary shares and the formal ratification of previous debt and corporate guarantees—indicate that the company is actively rebalancing its capital structure. For capital-intensive hydropower developers, transitioning from high-interest bank debt to equity-based or convertible debt financing lowers debt-servicing burdens, improves the debt-to-equity ratio, and enhances long-term solvency. This capital injection will bolster the company's balance sheet, providing financial flexibility to manage ongoing operations or finance potential capacity expansion.