Last date today to bid for promoter shares of NIBL and Nepal Aawas

ShareSansar, September 15:

Today is the last day to bid the promoter shares of Nepal Investment Bank Limited (NIBL) and Nepal Awas Finance Limited which Rastriya Banijya Bank Ltd is divesting through the auction due to the central regulatory bank’s restriction on crossholding.  

As the NIBL’s shares are lucrative, the officials of RBB expect that the investors will rush to bid the scrips at the bid closing day.

“So far the responses are very encouraging, we expect that many more other investors will bid the shares on the bid closing day,” RBB’s treasury department Chief Bhupendra Pandey told ShareSansar.

He also said that they will work at a full swing to ensure that the new buyers will be able to receive the dividend of the NIBL.

NIBL is one of the top dividend distributing banks of the country.

NIBL recently announced 40 percent dividend--25 percent cash and 15 percent bonus share--to its shareholders. The decision of the bank’s BoD meeting is however subject to the approval of its upcoming AGM and the Nepal Rastra Bank.

The bank had offered 35 percent dividend - 25 percent cash and 10 percent bonus shares - to shareholders from the net profit it earned in the last fiscal year 2012/13.

Likewise, NAFL had also distributed 8 percent dividend to its shareholders in the last fiscal year.

The bank, however, has not announced the book closure date yet.

“We will complete the allotment before the book closure date ends so that the new buyers will reap the benefit announced by the NIBL,” he added.

The minimum per unit share price has been set for Rs 530 for NIBL and Rs 101 for Nepal Awas, which means that the investors must quote at least Rs 531 for the NIBL per unit shares and Rs 102 for the Nepal Awas.

“Shares of the NIB is one of the best shares in Nepal’s capital market. It’s not like we are selling it on our own interest. We are bound to follow the directive of regulators so we are offloading it. These shares are sought by the investors so they will bid it,”RBB CEO Krishna Prasad Sharma told ShareSansarin an interview.

The interested investor can get the bidding form from various collection centers at RBBL’s branch offices inside Kathmandu and outside the valley as well as Nabil Investment Banking Ltd office at Naxal of free of charges. Nabil Investment is the issue manager of the RBB.

Investors can collect the forms from RBBL’s branch offices Bishalbazar, Thapathali, Banseswor, Maharajgunj, Gaushala, Bhotahiti, Teku, Kalanki in Kathmandu, Pulchowk in Lalitpur and Suryabinayak branch office in Bhaktapur.

Similarly, they can get the forms from Banepa, Chitwan, Biratnagar, Dharan, Hetuada, Bhairhawa, Butwal, Nepalgunj, Mahendrapul in Pokhara, Birtamod, Janakpur, Bidur, Birgunj, Dhangadhi, Tulsipur, Lahan and Kanchanpur branches outside the Kathmandu valley.