City Hotel Limited (CITY) has announced its proposal to issue 80% rights shares to its shareholders, based on the decision made during its Board of Directors meeting held on Mangsir 14, 2081.
The proposed rights issue will be in the ratio of 1:0.80, meaning shareholders will be eligible to purchase 80% of their existing shareholdings as right shares. The rights issuance will be calculated on the company’s current paid-up capital of Rs. 1.67 Arba, amounting to the issuance of 1,33,92,000 units of right shares. Once the rights shares are fully subscribed, the company’s paid-up capital will increase to Rs. 3.01 Arba.
The issuance of these rights shares is subject to the necessary regulatory approvals and the endorsement of the proposal at City Hotel Limited’s upcoming Annual General Meeting (AGM). Shareholders are expected to deliberate on the proposal and give their approval to proceed. Following this announcement, City Hotel Limited’s stock closed at Rs. 914.00 per share.
This decision is seen as a strategic move by the company to strengthen its financial base and capitalize on future opportunities in Nepal’s thriving hospitality and tourism industry. Further updates regarding the rights issuance and AGM details are anticipated in the coming weeks.
