Civil Bank & 3 Other BFIs added to SEBON Right Share pipeline for approval

Bhargav Bikas Bank Limited (BHBL), Shree Investment and Finance Co. Ltd. (SIFC), Om Development Bank Ltd. (ODBL) and Civil Bank Ltd. (CBL) have applied in Securities Board of Nepal (SEBON) for the issuance of right share. Altogether 3,05,51,947.37 unit’s right shares have been added in Sebon right share pipeline. Bhargav Bikas Bank will be issuing a total of 21,12,000 units right shares, each to be floated to its shareholders at par value of Rs 100 per share. NMB Capital Limited has been appointed as the issue manager for the right share issue. BHBL’s SGM held on May 20, 2017 had approved 80% right share issue to its shareholders. The bank had earned net profit of RS 2.43 crore in the third quarter of the fiscal year 2073/74. After the right issue the bank’s paid up capital will reach Rs 47.52 crore.It had recently issued 100% right share to its shareholders. After this, its paid up capital has reached Rs 26.40 crore. After the issuance of this 80% right share, its paid up capital will reach Rs 47.52 crore. As per NRB’s requirement for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, BHBL will need to issue a further capital hike of Rs 2.48 crore (around 5.25%). Shree Investment and Finance Co. Ltd. has also applied in SEBON for the approval to issue 10:8.3 (83%) right share worth Rs 27.67 crore to its existing shareholders. Siddhartha Capital Limited has been appointed as the issue manager for the right share issue. SIFC’s special AGM held on July 9, 2017 had approved 83% right share issue to its shareholders.The bank had earned net profit of Rs 5.92 crore in the third quarter of the fiscal year 2073/74. Its paid up capital remains at Rs 34.54 crore. After the right issue the bank’s paid up capital will reach Rs 63.2 crore.As per NRB’s requirement for all finance company to increase their paid up capital to a minimum of Rs 80 crore by the end of FY 2073/74, SIFC will need to issue a further capital hike of Rs 16.8 crore (around 26.5%). Om Development Bank had also applied in SEBON for the approval to issue 10:3 (30%) right share worth Rs 49.31 crore to its existing shareholders. NIBL Capital Markets Limited has been appointed as the issue manager for the right share issue. ODBL’s special AGM held on March 14, 2017 had approved 30% right share issue to its shareholders. The bank had earned net profit of RS 26.57 crore in the third quarter of the fiscal year 2073/74. After adjustment of right share its paid up capital will reach Rs 2.13 arba. As per NRB’s directive for all national level development banks, the bank should increase its paid up capital to Rs 2.50 arba by the end of FY 2073/74. Civil Bank is seeking approval to issue 10:4 (40%) right share worth Rs 2.07 arba to its existing shareholders. Laxmi Capital Markets Limited has been appointed as the issue manager for the right share issue. CBL 6^th AGM held on May 18, 2017 had approved 40% right share issue to its shareholders.The bank had earned net profit of RS 16.28 crore in the third quarter of the fiscal year 2073/74. Its paid up capital currently stands at Rs 4.58 arba. After the right issue the bank’s paid up capital will reach Rs 7.25 arba. Civil Bank has recently started joint transaction with Hama Merchant and Finance Company Limited.