Nepal SBI Bank amends FPO premium price to Rs 971 from Rs 984; changed as per SEBON’s direction

Nepal SBI Bank Limited (SBI) has revised the price of upcoming Further Public Offering (FPO) of 67,767.87 units shares to Rs. 971 from Rs. 984 fixed earlier on prevailing market price of last 180 days (as of 6^th December 2016). As per the notice published in Nepal Stock Exchange Limited today, the company’s 401^st BOD meeting held today had revised the FPO price. The company revised the FPO price at the instance of directions given by Securities Board of Nepal (SEBON). As per the official of Nepal SBI Bank, The FPO is under review process in SEBON,  Our plan is to float FPO before AGM but it depend on the approval from the Board. As soon as the Board approves the FPO, we will issue it within 2 weeks of getting approval. SBI Bank is issuing the FPO as per a directive issued by the central bank to maintain at least 30% stake of public shareholders in its share structure. At present its promoter shareholder: public shareholder ratio stands at 70.12:29.88. Two Institutional promoters hold 70.12% of total shares in the Bank. State Bank of India holds 55.09% of the total ownership whereas Employee provident Fund holds 15.03% shares. After the FPO, promoter: public shareholder ratio will be maintained at 70:30. The bank had already proposed 28% bonus shares and 1.53% and cash dividend (for tax purpose) to its shareholders from the net profit it earned in the FY 2072/73. The commercial bank has paid up capital of Rs 3.88 arba. After distribution of 28% bonus share, it’s paid up will reach to Rs 4.96 arba. Also the bank had decided to issue 10:4 (40%) right share share to its shareholders. The bank will issue 40% right share after bonus share distribution and floating FPO. Nepal SBI Bank had earned net profit of Rs 35.44 crore in the first quarter company of the current fiscal year 2073/74.