Book Closure for 40% right shares of Muktinath Bikas Bank on Shrawan 20; LTP at Rs 993

Muktinath Bikas Bank Limited (MNBBL) has set book closure date for its upcoming 10:4 (40%) right shares. As per the notice published by the development bank today, the bank has decided to close the register of their shareholders on Shrawan 20, 2073 for the purpose of issuing right share. Only those shareholders that have shares traded ahead of the book closure date will be eligible to apply for the right shares. SEBON had given approval for the issuance of right shares on Shrawan 2, 2074. NIBL Capital Markets Limited has been assigned as the issue manager for right share issue. MNBBL will now be issuing 6,170,865.04 units right shares at a par value of Rs 100 per unit. 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. Its last traded price(LTP) stood at Rs 993 as on July 25, 2017.