Singati Hydro Energy Limited (SHEL) has announced that it will issue rights shares equivalent to 100 percent of its paid-up capital after distributing bonus shares from the previous fiscal year’s profit.

Earlier, the company had declared a 5 percent bonus share distribution for its shareholders from last year’s earnings. Following the bonus adjustment, the Board of Directors, in its meeting held on Mangsir 8, decided to issue rights shares in a 1:1 ratio, meaning shareholders will be able to apply for one rights share for every one share they hold.

The funds raised from the rights issue will be utilized to repay the company’s outstanding loans, as per the board's decision. The proposal will now be presented at the upcoming Annual General Meeting (AGM) for approval.

With this move, Singati Hydro aims to strengthen its financial position and reduce debt burden, improving its long-term operational stability.