Garima Bikas Bank & Goodwill Finance 70% & 60% right share respectively added in SEBON pipeline

Garima Bikas Bank Limited (GBBL) and Goodwill Finance Limited (GFCL) 70% and 60% right shares respectively have been added in Securities Board of Nepal (SEBON) pipeline for approval. GBBL is seeking approval to issue 9,076,296.66 units shares whereas Goodwill Finance is seeking approval for 2,722,500  units shares which are to be floated at face value of Rs 100 per share. Ace Capital Limited has been appointed as the issue manager for Garima Bikas Bank right share and NIBL Capital Markets Limited is the issue manager for Goodwill Finance. Garima Bikas Bank had earned net profit has of Rs. 15.95 crore in second quarter of the fiscal year 2073/74. Its paid up capital stands at Rs 1.29 arba and after issuance of 70% right share, its paid up capital will reach Rs 2.19 arba. As per NRB’s requirement for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, GBBL should increase its capital by a further 13.85%. Goodwill Finance had earned net profit of Rs 2.97 crore in the second quarter of the fiscal year 2073/74 as per its unaudited report. Its paid up capital stands at Rs 45.37 crore and after the issuance of 60% right share, the paid up capital will rise to Rs 72.59 crore. To meet up with NRB’s minimum paid up capital requirement of Rs 80 crore, GFCL should issue a further capital hike of around 10.20%.