More than 20% units (19.50 lakh units) right shares of Agricultural Dev Bank unclaimed; to be auctioned soon

Agricultural Development Bank Limited (ADBL) had issued 50% right shares (1.96 crore units) for its promoter (Government of Nepal) and the general public from Kartik 3, 2073. While the government had already provided the fund required for its right shares as calls in advance, existing shareholders have not subscribed their right shares worth more than Rs 19.50 crore. ADBL will soon be auctioning more than 19.50 lakh units (more than 20% of the total issue for public) out of the floated 96.88 lakh ordinary shares. As per an official of Ace Capital Limited, more than 19.50 lakh units shares were unclaimed. “The auction notice with the exact number of units will be published in a week”, added the official. Out of 2.3 lakh shareholders, only 1.4 lakh shareholders had applied for the right shares. At more than 19.50 lakh units shares worth more than Rs 19.50 crore, this will be the largest auction for right share of any company. ADBL is expected to earn a good amount in premium from the auction. ADBL recently proposed 20% bonus share for the FY 2072/73. After the capitalization of bonus, auction and the adjustment of 50% right share, the paid up capital of the commercial bank will reach Rs 7.08 arba, in addition to the irredeemable preference share worth Rs 5.43 arba. It will need to further hike its capital by around 13% to meet NRB’s minimum requirement of Rs 8 arba by the end of FY 2073/74.