Machhapuchchhre 5.55 million units Right Shares likely within Shrawan, ICRA rated IPO Grade 4+

ShareSansar July 6:

Machhapuchchhre Bank Limited (MBL) will soon be issuing 20% right shares of worth Rs 555.25 million to its shareholders.  The 16th AGM of MBL held on 26th Mangsir, 2071 had approved to issue 5:1 ratio right shares. As per the Bank official, the right share is waiting for the approval of SEBON and notice regarding issuance of right shares will be published as soon as permission is received from SEBON. The bank is likely to issue right shares within the month of Shrawan, official added.  

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4+”, indicating below-average fundamentals to the proposed rights issue offerings amounting to NPR 555.25 million of Machhapuchchhre Bank Limited (MBL). ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.

The company’s paid up capital at present stands at Rs 2.77 arba. Its promoter- public ratiois at 66.55% to 33.45%. The bank might convert its 15.55% promoter share into public share making the promoter- public share 51% to 49% in the near future.

The Bank will also be issuing bonds worth Rs 500 million in next fiscal year.  ICRA Nepal has assigned rating of [ICRANP] LBBB-(pronounced ICRA NP L triple B minus) to subordinated bond programme of NPR 500 million of Machhapuchchhre Bank Limited (MBL). Instruments with this rating category are considered to have moderate degree of safety regarding timely servicing of financial obligations. Such instruments carry moderate credit risk.