ICRA Nepal assigns grade 4 to 100% right issue of Cosmos Dev Bank; right share to be floated within 3 months

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 50.31 million of Cosmos Development Bank Limited. The process to issue right share of CSDBL is on review process in SEBON. Kamal Khatri, Assistant Manager of Civil Capital Market Limited said, ‘The right issue will be floated wthin approximately 2 to 3 months.’ The development bank is proposing 1:1 (100%) rights issue of 5, 03,125 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. Civil Capital Market Limited has been assigned as the issue manager for the right issue. CSDBL had earned a net profit of Rs. 59.25 lakh in the second quarter of the current fiscal year 2072/73. The paid up capital of the bank remains Rs 4.37 crore. After the issuance of 100 percent, the paid up capital will reach at Rs 8.74. 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.