ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 100 million of Nepal Community Development Bank Limited (NCDB). The process to issue right share of NCDB is on review process in SEBON.
The development bank is proposing 1:1 (100%) rights issue of 1,000,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par.
NIBL Capital Markets Limited has been assigned as the issue manager for the right issue.
NCDB had earned a net profit of Rs. 1.52 lakh in the first quarter of the current fiscal year. The paid up capital of the bank stands at 11.84 crore. After the issuance of 100 percent, the paid up capital will stand at Rs 23.68 crore.
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.