Nepal SBI Bank FPO allotment next week; FPO oversubscribed by 73 times

The allotment of shares under the Further Public Offering (FPO) of Nepal SBI Bank Limited (SBI) will be made public by upcoming week of Magh. An official of NMB Capital said, ‘Since the deadline of FPO allotment is nearing, we will carry out the allotment by next week.’ Nepal SBI Bank Limited (SBI) had issued 67,767.87 units shares worth Rs 6.58 crore as a part of Further Public Offering (FPO) from Poush 11, 2073 till Poush 14, 2073. The FPO was issued at Rs 971/unit. The FPO has been oversubscribed by more than 73 times till last day. NMB Capital Limited was assigned as the issue manager for the FPO issue. Nepal SBI Bank had issued 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, the promoter and public shareholder ratio will be maintained at 70:30. The bank has a paid up capital of Rs 3.88 arba. After the issuance of the FPO, its paid up capital will reach to Rs 3.89 arba. The bank has already proposed 28% bonus shares and 1.53% cash dividend (for tax purpose) to its shareholders from the net profit it earned in the FY 2072/73. In addition, the bank has also proposed 40% right shares. Those shareholders who will be allotted the shares from this FPO will also be entitled for the proposed bonus shares and right shares. Nepal SBI Bank had earned net profit of Rs 35.44 crore in the first quarter of the current fiscal year 2073/74.