City Express Finance's 167% right share in SEBON pipeline; paid-up capital to reach Rs 40 crore

The right share of City Express Finance Company Limited (CEFL) has been added in the SEBON’s pipeline for approval. The 167% right share issue of 25 lakh unit shares of the finance company has been added in the pipeline for approval.

Kathmandu Capital Market Limited has been appointed as the issue manager for the right issue.

The current paid-up capital of the finance is Rs 15 crore with additional calls-in-advance of Rs 13.03 crore. After the 167% right issue, its paid-up capital will increase to Rs 40 crore. Care Ratings Nepal has assigned Grade 5 rating to this issue, indicating poor fundamentals.

The then Kuber Merchant Banking and Finance was rebranded to City Express Finance after it came under new management after being removed from crisis-ridden financial institutions list. As per NRB's directive for all national level finance companies to increase their paid-up capital to Rs 80 crore, CEFL will still by short Rs 40 crore. NRB has directed earlier problematic declared companies to hike the capital until the end of FY 2075/76.