ICRA Nepal assigns grade 4+ to upcoming 25% right issue to Shangri-La Dev. Bank

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+”, indicating below-average fundamentals to the proposed rights issue amounting NPR 184million of Shangri-La Development Bank Limited (SADBL). The process to issue right share of SADBL is on review in SEBON. The development bank proposing 4:1 (25%) rights issue of 1,840,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. NMB Capital Limited has been assigned as the issue manager for the right issue. SADBL had earned a net profit of Rs.3.19 crore in the first quarter of the current fiscal year. The paid up capital of the bank stands at 73.60 crore. After the issuance of 25 percent, the paid up capital will stand at Rs 92 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.