Kamana Bikas Bank to issue 30% (24.13 lakh units) right share from Ashad 11; Offer ends on Shrawan 15

Kamana Bikas Bank Limited (KMBL) will be issuing 10:3 (30%) right shares to its existing shareholders from Ashad 11, 2074. According to the notice published by the development today, the right issue will remain open for 35 days before closing on Shrawan 15, 2074. Kamana Bikas Bank will be issuing a total of 24,13,137.60 unit right shares at the face value of Rs 100. Since KMBL’s trading is suspended in NEPSE due to its merger with Sewa Bikas Bank Limited from Mangsir 11, 2073. Only those shareholders with shares traded till Mangsir 10, 2074 are eligible to apply for the right shares. NIBL Capital Markets Limited has been assigned as the issue manager for the right issue. Interested shareholders can collect the application forms from NIBL Capital Markets Limited, Lazimpat, Kathmandu, designated branches of Nepal Investment Bank in Biratnagar, Birgunj, Butwal, Nepalgunj, Dhangadhi and from all branch offices of Kamana Bikas Bank. KMBL has earned net profit of Rs 14.47 crore in the third quarter of the ongoing fiscal year 2073/74. It is currently under merger process with Sewa Bikas Bank, for which the share swap ratio has been fixed at 1:1. After their merger, the merged entity will be named “Kamana Sewa Bikas Bank Limited” and will have a paid up capital of Rs 2.06 arba. It has authorized capital of Rs 3 arba. As per NRB’s directive for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, the merged bank will need to issue a further capital hike of around Rs 44 crore (around 21.50%).