ICRA Nepal assigns grade 4 to upcoming 3:1 right issue of Subhechha Dev. Bank

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 50.09 million of Subhechha Development Bank Limited(SUBBL). The development bank proposing 3:1 (33.33%)rights issue of 500,852 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. SUBBL had earned a net profit of Rs. 27.25 lakhs in the first quarter of the current fiscal year. The paid up capital of the bank stands at 15.65 crore. After the issuance of 33.33 percent, the paid up capital will stand at Rs 20.81 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.