ICRA Nepal assigns 3+ to upcoming FPO issue of Nepal Investment Bank Limited

Wed, Jan 6, 2016 11:45 AM on Latest, IPO/FPO News, Featured, Credit Rating,
ICRA Nepal has assigned an “[ICRANP] IPO Grade 3+”, indicating average fundamentals of the proposed Further Public Offer (FPO) amounting to NPR 5,341.42million of Nepal Investment Bank Limited (NIBL). NIBL is proposing to come out with FPO of 9,069,388 numbers of equity shares of face value NPR 100/-each to be issued to the general public (8,615,919 shares) at a premium of NPR 501 per share (issue price for public NPR 601 per share) and staff (453,469shares) at a premium of NPR 260 per share (Issue price for staff NPR 360 per share). ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. At present Promoter and ordinary shareholders’ share structure in the commercial bank stands at 80:20 ratios. After the FPO promoter and ordinary shareholders share structure will be at 70:30 ratio.