Narayani Development Bank (NABBC) Extends 1: 1 Rights Offering

Narayani Development Bank Limited (NABBC) has extended its rights offering. The issue had opened on 7th Poush and was supposed to conclude today, i.e. on 27th Poush, 2078. The company has now decided to extend the rights issue till Magh 12.

A total of 13,12,338 unit shares are being issued at a par value of Rs. 100 per share.

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.

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+".

Global IME Capital has been appointed the issue manager for the rights offering. Shareholders maintained before Mangsir 24 are entitled to apply for the rights offering.

Offer Letter