The deadline to meet the paid up capital requirement for Banks and Financial Institutions (BFIs) is nearing, and many companies are opting to issue right shares in order to increase their capital. This is an opportunity for the shareholders to purchase additional new shares of the companies at par value of Rs 100.
Altogether 7 companies have been issuing right shares to their shareholders currently. NIC Asia Bank (NICA), Kumari Bank Limited (KBL), Tourism Development Bank (TDBL), Mission Development Bank (MIDBL), Nerude Laghubitta Bikas Bank Limited (NLBBL), Bhargav Bikas Bank (BHBL) and Deprosc Development Bank Limited (DDBL) have been issuing right shares to their shareholders.
Among these BFIs, Tourism, Mission, Deprosc and Bhargav are floating 1:1 (100%) right share to its shareholders. A total of 3.8 crore units right share worth Rs 3.80 arba are open.
Ongoing right shares:
| S.N |
Companies |
Ratio |
Units |
Opening Date |
Closing Date |
Issue Manager |
| 1 |
NICA |
100:15 |
8,729,475 |
3/29/2017 |
5/2/2017 |
Civil Capital Markets Ltd. |
| 2 |
TDBL |
1:1 |
9,197,712 |
3/26/2017 |
4/30/2017 |
NIBL Capital Market Ltd |
| 3 |
NLBBL |
2:1 |
900,000 |
3/27/2017 |
4/30/2017 |
NCM Merchant Banking Ltd. |
| 4 |
MIDBL |
1:1 |
1,949,250 |
3/16/2017 |
4/19/2017 |
Vibor Capital Ltd |
| 5 |
KBL |
2:1 |
13,495,833 |
3/19/2017 |
4/23/2017 |
Siddhartha Capital Ltd |
| 6 |
DDBL |
1:1 |
2,579,238 |
3/20/2017 |
4/23/2017 |
Nabil Investment Banking Ltd. |
| 7 |
BHBL |
1:1 |
1,200,000 |
3/7/2017 |
4/10/2017 |
NMB Capital Ltd |
|
Total |
|
38,051,508 |
|
|
|
Likewise, Laxmi Bank (LBL), Citizens Bank International Limited (CZBIL), and Prabhu Insurance Company Limited (PRIN) have already published their offer letters but still few days are left for the right share opening. Laxmi Bank will be issuing 100% right share, Prabhu Insurance will be issuing 50% right share to its shareholder and Citizens Bank International Limited will be floating 25% right share.
| S.No |
Companies |
Ratio |
Units |
Opening Date |
Closing Date |
Issue Manager |
| 1 |
LBL |
1:1 |
31,590,303 |
4/16/2017 |
5/21/2017 |
Siddhartha Capital Ltd |
| 2 |
CZBIL |
10:2.5 |
13,843,379 |
4/6/2017 |
5/10/2017 |
Sanima Capital Limited |
| 3 |
PRIN |
2:1 |
1,925,079 |
4/12/2017 |
5/16/2017 |
Prabhu Capital Ltd |
Recently, Sanima Bank Limited (SANIMA), Nepal Bank Limited (NBL), First Microfinance Development Bank Limited (FMDBL), Hamro Bikas Bank Limited (HAMRO), Siddhartha Development Bank Limited (SDBL) and Gurkhas Finance Limited (GUFL) have been approved by Securities Board of Nepal (SEBON) for the issuance of right shares. But these companies have not issued offer letter till date.
Sanima Bank Limited (SANIMA) has already announced book closure date for its upcoming right share issue. The book closure date was set for Chaitra 18, 2073. Likewise Siddhartha Development bank has also announced book closure date for the right share, the trading of the bank has been halted in NEPSE as it has signed an agreement with Janata Bank Nepal Limited (JBNL) for acquisition, Only those shareholders holding shares one trading day before Falgun 18, 2073 are eligible for right share since its trading was halted on Falgun 19.
| S.No |
Symbol |
Ratio |
Units |
Issue Manager |
| 1 |
SANIMA |
10:3 |
15,917,617 |
CBIL Capital Ltd |
| 2 |
NBL |
100:23.74 |
15,431,840 |
Civil Capital Markets Ltd |
| 3 |
FMDBL |
2:1 |
1,322,500 |
Global IME Capital Ltd |
| 4 |
HAMRO |
1:2 |
3,058,339 |
NIBL Capital Markets Ltd |
| 5 |
GUFL |
2:1 |
2,993,313 |
NIBL Capital Markets Ltd |
| 6 |
SDBL |
10:6 |
8,515,006 |
Nabil Investment Banking Ltd |
21 companies are in the process of seeking approval from SEBON and are in the right share pipeline to issue a total of 12.71 crore units right shares worth Rs 12.71 arba. Many companies have proposed for right share but are yet to apply to the Board.
