First Microfinance’s Rs 60 crore capital mission: 50% right approved by SEBON, further 15% bonus & 50% right next year

Securities Board of Nepal (SEBON) has recently provided final approval to First Microfinance Development Bank Limited (FMDBL) for the issuance of right shares in the ratio 100:50. FMDBL will now be issuing 1,322,500 units right shares at the face value of Rs 100 each to be issued to its existing shareholders at par. In line with Nepal Rastra Bank’s directive for all microfinance institutions that provide wholesale lending to other microfinances, FMDBL has to increase its paid up capital to Rs 60 crore by the end of FY 2074/75. As per its capital plan, FMDBL will issue further 50% right share next year as well. Capital Plan: 15% bonus and further 50% right next year Its current paid up capital stands at Rs 26.45 crore. After issuance of 50% right share this year, its paid up capital will reach Rs 39.67 crore. As per its capital plan, FMDBL will provide 15% bonus share to its shareholders in the FY 2073/74. After this, its paid up capital will reach Rs 45.62 crore. It will again issue 50% right share next year, after which its paid up capital will reach Rs 68.44 crore. FMDBL has earned net profit of Rs 3.36 crore in the second quarter of the FY 2073/74.