Today is the last chance to be eligible for the rights offering of Narayani Development Bank Limited (NABBC). Shareholders maintained till today are entitled to apply for the rights offering since Mangsir 24 is the book closure date.
The company had submitted its application to the Securities Board of Nepal to issue rights shares in the ratio 1: 1. The application was submitted to the regulator on Ashad 04. 13,12,338 shares will now be issued. SEBON has already approved the proposal.
The 19th AGM of the company held on Magh 16, 2077 had endorsed the proposal to issue 1: 2 right shares. The right shares were to be issued on the paid-up capital of Rs. 13,12,33,800. However, based on the letter forwarded by the central bank on Jestha 20, 2078, the development bank was given approval to issue the right shares in a 1: 1 ratio only. This will only double the paid-up capital, compared to the company's expectation to tripe it.
Global IME Capital has been appointed the issue manager for the rights offering. ICRA Nepal has given the issuer rating C+, denoting a very high risk of default regarding timely servicing of financial obligations. This is the poorest rating ICRA Nepal could give in the range from "AA" to "C+".
As of writing, NABBC has the last day's closing price of Rs. 883.