Nepal SBI to float 67,767.87 units FPO at Rs 984 to make its public shareholding 70:30

Nepal SBI Bank Limited (SBI) has published premium price for 67,767.87 units Further Public Offering (FPO) at Rs 984. The FPO has been added in Securities Board of Nepal (SEBON) pipeline for approval. As per the notice published in NEPSE today, the company’s 398^th BOD meeting held on October 17, 2016 had decided to issue Further Public Offering (FPO) of 67,767.87 units shares at Rs 984 per share which includes par value of Rs 100 and premium of Rs 884 per share. It is issuing the FPO as per a directive issued by the central bank to maintain at least 30% stake of public shareholders in its share structure. At present its promoter shareholder: public shareholder ratio stands at 70.12:29.88. Two Institutional promoters hold 70.12% of total shares in the Bank. State Bank of India holds 55.09% of the total ownership whereas Employee provident Fund holds 15.03% shares. After the FPO, promoter: public shareholder ratio will be maintained at 70:30. Also the bank had proposed 28 percent bonus share to its shareholders from the profit it earned in 2072/73 fiscal year. Nepal SBI Bank had earned net profit of Rs 35.44 crore in the first quarter company of the current fiscal year 2073/74.Its paid up capital stand at Rs 3.88 arba. After distribution of 28% bonus share, it’s paid up will reach to Rs 4.96 arba. The bank has to increase its paid up capital to Rs 8 arba by the end of ongoing fiscal year. The bank shall issue right share in premium to meet up the requirement in the near future.