Muktinath Bikas Bank applies to SEBON for issuing 40% right share

Muktinath Bikas Bank Limited (MNBBL) has applied to Securities Board of Nepal (SEBON) to seek approval for the issuance of 40% right shares. MNBBL has now been added in SEBON’s right share pipeline to request approval for floating 61,70,865.04 units right shares worth Rs 61.70 crore to its shareholders. NIBL Capital Markets Limited is the assigned issue manager for this right offer. Muktinath Bikas Bank is a national level development bank and as per central bank’s directive, it should increase its paid up capital to a minimum of Rs 2.50 arba by the end of the current FY 2073/74. Its current paid up capital is at Rs 1.54 arba. MNBBL’s 10^th AGM held on Mangsir 4, 2073 had endorsed capital increment by the way of issuing right shares in the ratio 10:4. After the issuance of right shares, MNBBL’s paid up capital will reach around Rs 2.15 arba. To meet up with the minimum paid up capital requirement, MNBBL should issue a further capital hike of Rs 35 crore (around 16%). MNBBL has posted net profit of Rs 35.51 crore up to the end of third quarter of FY 2073/74.