Laxmi Bank receives approval from SEBON to issue 100% Right Share

Securities Board of Nepal (SEBON) has given final approval to issue 1:1 (100%) right shares of Laxmi Bank Limited (LBL). Siddhartha Capital Limited has been assigned as the issue manager for right share issue. Laxmi Bank SGM held on Kartik 7, 2073 had endorsed 1:1 right share i.e. 3,15,90,303 units to its existing shareholders. Laxmi Bank had acquired Professional Diyalo Bikas Bank at a swap ratio of 100:50. The joint operation of both the banks started from Magh 2, 2073 as a class “A” commercial bank. LBL has proposed 18.29% bonus share for the FY 2072/73, which will be distributed after issuance of right shares. After the issuance of right and bonus shares, its paid up capital will reach Rs 7.47 arba. As per NRB’s requirement for all commercial banks to maintain a minimum paid up capital of Rs 8 arba by the end of FY 2073/74, it will need to issue a further capital increase of around 7.1%. Its last traded price (LTP) stood at Rs 705 as on March 13, 2016.