Nepal SBI Bank FPO oversubscribed by 22 times; issue to close tomorrow

Nepal SBI Bank Limited (SBI) has been issuing 67,767.87 units shares worth Rs 6.58 crore as a part of Further Public Offering (FPO) from Poush 11, 2073. The FPO is being issued at Rs 971/unit. As per an official of NMB Capital, the issue has been oversubscribed by over 22 times. The issue collected Rs. 55.49 Crores on the first day from 5,445 applicants. On the second day, 10,052 applicants applied for a total fund of Rs. 89.96 crore. “The figures of both days are only approximate and the final data may vary”, added the official. The FPO applications will close tomorrow (Poush 14, 2073). Interested people must apply for a minimum of 10 units of share and they can apply for up to 670 units of share. NMB Capital Limited is the issue manager for this FPO. Nepal 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, 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 are also 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.