Nepal SBI Bank gets approval from SEBON to float 67,767.87 units FPO shares at Rs 971 premium price; Mahakali Bikas Bank's 236,367.53 units FPO shares added in pipeline

Nepal SBI Bank Limited (SBI) has got final approval from Securities Board of Nepal (SEBON) to float Further Public Offering (FPO)  worth Rs 6.58 crore (67,767.87 unit shares) at premium price of Rs 971 on Mangsir 24, 2073. NMB Capital Limited has been appointed as the issue manager for the 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, 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. Nepal SBI Bank had earned net profit of Rs 35.44 crore in the first quarter company of the current fiscal year 2073/74. Also, the bank had decided to issue 10:4 (40%) right share to its shareholders. The bank has decided to issue 40% right share after bonus share distribution and floating FPO. Mahakali Bikas Bank Limited (MBBL) has been added in SEBON IPO/FPO pipeline for approval to issue 236,367.53 units shares at premium price. Siddhartha Capital Limited has been assigned as the issue manager for FPO issue. At present its promoter shareholder: public shareholder ratio stands at 59.11:40.89. The development bank is issuing the FPO as per a directive issued by the central bank to maintain share structure at 51:49. After issuing 236,367 units FPO shares, promoter: public shareholder ratio will be maintained at 51:49. Mahakali Bikas Bank limited had earned net profit of Rs 2.60 lakh in its first quarter of the fiscal year 2073/74 as per unaudited report.Its paid up capital stand at Rs 14.88 crore. Mahakali Bikas Bank trading has been halted in Nepal Stock Exchange as the bank has signed acquisition deal with Kumari Bank.