Laxmi Bank plans to raise it’s Paid up Capital to NPR 8 Billion by way of:
- Merger or Acquisition of other Financial Institutions
and/or
- Capitalization of Profits
and/or
- Right Issue
The Bank is open to mergers and acquisitions with like minded Financial Institutions that will provide synergy at business and operational levels in additional to Capital. The Merger Committee formed by the Board is exploring opportunities in line with this goal.
As an alternative and/or to support capital infusion through M &A, the Bank has decided to adopt the following capital plan and schedule:
| List |
Figures in NPR ‘000 |
| Paid up Capital as at Fiscal Year end 2014/15 |
2,337,869 |
| Paid Up Capital after allotment of 30% Right Issue is capitalized in FY 15/16 |
3,039,229 |
| 100% Right Issue announced in FY 15/16 and subject to AGM and regulatory approvals |
6,078,458* |
| + Capitalization of distributable profit for FY 2014/15 (unaudited) |
250,000 |
| + Capitalization of distributable profit for FY 2015/16 (projected) |
550,000 |
| + Capitalization of distributable reserve from debenture redemption reserve (Laxmi Bank Debenture 2072) |
350,000 |
| + Capitalization of share premium from 30% Right Issued during FY 14/15 (estimated) |
75,000 |
| + Capitalization of share premium from the planned 100% Right Issue (estimated) |
100,000 |
| TOTAL |
8,003,458 |
*The size of Right Issue will be adjusted in the event of a merger/acquisition.
