Kanchan Development Bank’s price adjusted for 30% right share

Nepal Stock Exchange (NEPSE) has adjusted the price of Kanchan Development Bank Limited (KADBL) today after its book closure for 30% right shares. The new adjusted price is Rs 292. Likewise, its average base price accounting for this price adjustment has turned out to be Rs 256. KADBL will be issuing a total of 1,039,500 units (30%) right shares worth Rs 10.39 crore, each to be floated to its existing shareholders at par value of Rs 100 per share. KADBL’s 7^th AGM held on December 25, 2016 had endorsed the agenda to issue further 30% right shares. Its current paid up capital remains at Rs 34.65 crore. After the issuance of 30% right, its paid up capital will reach Rs 45.04 crore. As per NRB’s directive for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, KADBL will need to issue a further capital hike of around 11%.