Kankrebihar to float 1:0.5 right share; 15% bonus shares also expected

ShareSansar, June 11:

Kankrebihar Bikas Bank Limited has decided hold its special general meeting on June 28 to endorse 1:0.5 ratio of right shares to shore up its paid-up capital.

Issuing a notice today the class ‘B’ development bank based in Birendranagar of Surkhet has also announced book closure from June 18 for the special general meeting to be held at the conference hall of District Development Committee of Surkhet.

Hence, only those shareholders who already hold the share of the company by June 17 will be entitled to the right shares.

Talking to ShareSansar over the phone this morning, Company secretary of Kankrebihar Jagat Bahadur Thapa clarified that the reason they were issuing the right shares was to raise the paid-up capital, which is rather low – only Rs 3.45 crore.

“We are also planning to expand our business to two more districts and not to limit ourselves to Surkhet,” he added. “This is another reason we are floating the right shares.”

He further informed that the shareholders can expect a bonus share for the current fiscal year, too as the development bank is looking forward to expand the capital base further.

“Since our core business has been steady this year also, we should be able to give bonus shares similar to what we had offered last year,” he added.

Kankrebihar had offered 15 percent bonus shares to the shareholders from the net profit it posted in the last fiscal year 2069/70.