ICRA Nepal assigns IPO Grade 4 to 20% right issue of Prabhu Bank; yet to receive final nod for joint operation with Grand Bank

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 641.78 Million of Prabhu Bank Limited. Prabhu Bank Limited (PRVU) will be issuing right shares in the ratio 5:1. At present the bank has a paid up capital of Rs 3.20 arba whereas after the issuance of 20 % right shares it will stand at Rs 3.84 arba. The right issue is in the pipeline for approval in SEBON. Nabil Investment Banking Limited is the issue manager for the right issue. Prabhu Bank has posted a net profit of Rs 1.03 arba in the fourth quarter of the last  fiscal year. The company reserve figure stands Rs 47.69  crore plus during the same period. 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. Prabhu Bank is in the process of acquiring Grand Bank. Prabhu Bank had applied for the final approval to start integrated business, a month ago, in NRB but has not received a final nod.