Interpretation on Standard Chartered Capital plan upon 70:30 promoter public shareholding structure
Mon, Oct 24, 2016 1:50 PM on Latest, Exclusive, Dividend, Bonus & Rights, Featured, Stock Market,
Since there is a huge confusion about capital plan of Standard Charted Bank Nepal Limited; Sharesansar again tried to interpret the capital plan in different scenario since company officials are not aware about the published capital plan when contacted.
As per the monetary policy of Nepal Rastra Bank, Commercial Banks need to hike their paid up capital to Rs 8 arba by the end of Ashad 2074 and Rs 4 arba by the end of Ashad 2073.
The current paid up capital of Standard Chartered Bank Nepal remains at Rs 2.81 arba as of FY 2071/72. The bank has recently proposed to distribute bonus share worth Rs 93.7 crore (33%) from the net profit it earned in the FY 2072/73, accordingly its paid up capital will rise to Rs 3.75 arba.
As per the published capital plan, Standard Chartered will also be floating Rs 3.30 arba worth Further Public Offering (FPO) shares at a premium to the public. At present its promoter shareholder: public shareholder ratio stands at 75:25.
As per Capital Plan, Standard Chartered may decrease its promoter share holdings from existing 75% to 70%; that is maximum SCB can reduced its promoter holding as per NRB guidelines. Later on, if required the company can again reduced promoter holding to 51%.
ShareSansar Interpretation about SCB capital plan:
As per the current paid up capital, SCB may issue FPO of 26.78 lakh units to maintain 70:30 promoters: public shareholding. In the capital plan SCB has mentioned that it will issue FPO worth Rs 3.3 arba which also includes premium amount collected from the issuance of FPO. That ways if SCB issue 26.78 lakh units at Rs 1232 (Rs 1132 premium) then the total amount would be equals to SCB mentioned Rs 3.3 arba figure. The company plans to capitalized premium money collected through FPO by issuing bonus share in the near future. Since, premium generated through FPO can be utilized only to issue bonus shares.
But SCB still have not made it clear, if they will distribute bonus (premium generated through FPO) in the current or next fiscal year.
Upon floatation of 26.78 lakh units at Rs 1232, SCB may come into condition to distribute upto 75% bonus share just from the money collected through FPO premium on the paid up capital after issuance of 33% bonus share of FY 2072/73.
After the issuance of Further Public Offering and its bonus share generated through premium, the paid up capital of the commercial bank will reach to Rs 7.05 arba.
In FY 2074/75, the bank will again provide 14.18 percent (10 lakh unit shares) to its shareholders from the net profit it earned in the FY 2073/74.
Disclaimer: All the interpretation made on this news is purely based on sharesansar assumption as per the capital plan published by Standard Chartered Bank Nepal Limited.
The current paid up capital of Standard Chartered Bank Nepal remains at Rs 2.81 arba as of FY 2071/72. The bank has recently proposed to distribute bonus share worth Rs 93.7 crore (33%) from the net profit it earned in the FY 2072/73, accordingly its paid up capital will rise to Rs 3.75 arba.
As per the published capital plan, Standard Chartered will also be floating Rs 3.30 arba worth Further Public Offering (FPO) shares at a premium to the public. At present its promoter shareholder: public shareholder ratio stands at 75:25.
As per Capital Plan, Standard Chartered may decrease its promoter share holdings from existing 75% to 70%; that is maximum SCB can reduced its promoter holding as per NRB guidelines. Later on, if required the company can again reduced promoter holding to 51%.
ShareSansar Interpretation about SCB capital plan:
As per the current paid up capital, SCB may issue FPO of 26.78 lakh units to maintain 70:30 promoters: public shareholding. In the capital plan SCB has mentioned that it will issue FPO worth Rs 3.3 arba which also includes premium amount collected from the issuance of FPO. That ways if SCB issue 26.78 lakh units at Rs 1232 (Rs 1132 premium) then the total amount would be equals to SCB mentioned Rs 3.3 arba figure. The company plans to capitalized premium money collected through FPO by issuing bonus share in the near future. Since, premium generated through FPO can be utilized only to issue bonus shares.
But SCB still have not made it clear, if they will distribute bonus (premium generated through FPO) in the current or next fiscal year.
Upon floatation of 26.78 lakh units at Rs 1232, SCB may come into condition to distribute upto 75% bonus share just from the money collected through FPO premium on the paid up capital after issuance of 33% bonus share of FY 2072/73.
After the issuance of Further Public Offering and its bonus share generated through premium, the paid up capital of the commercial bank will reach to Rs 7.05 arba.
In FY 2074/75, the bank will again provide 14.18 percent (10 lakh unit shares) to its shareholders from the net profit it earned in the FY 2073/74.
Disclaimer: All the interpretation made on this news is purely based on sharesansar assumption as per the capital plan published by Standard Chartered Bank Nepal Limited.
