Nepal SBI Bank proposes 10:4 right share worth Rs 1.99 arba; Right Share after bonus & FPO share
Tue, Nov 29, 2016 12:09 PM on Latest, Dividend, Bonus & Rights, Featured, AGM/Special AGM, Stock Market,

Nepal SBI Bank has decided to issue 10:4 (40%) right share share to its shareholders. The bank has decided to issue 40% right share after bonus share distribution and floating Further public Offering (FPO).
The company further adds- the quantum and ratio of the rights issue thus approved by the Board is well within the cap of Rs. 260 crore fixed by the 22nd AGM held on 24th Magh 2072 B.S. (7th February 2016) and the powers delegated to the Board by the said AGM.
As per the notice published in Nepal Stock Exchange Limited (NEPSE) today, The 400th meeting of the Board of Directors held yesterday ( Mangsir 13, 2073) has decided to approve issuance of right shares amounting to Rs. 1,99,19,42,360.00, which will be in the ratio 10:4.
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.
However, the decision is subjected to approval from Nepal Rastra Bank and Annual General Meeting (AGM).
Also, the bank has already set premium price for the 67,767.87 units FPO shares at Rs 984. It 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. After the FPO, promoter: public shareholder ratio will be maintained at 70:30.
The bank has decided to come out with the rights issue as part of implementation of its Capital Plan formulated in the year 2072 B.S. so in this way the bank will meet the Nepal Rastra Bank (NRB) requirement to increase paid-up capital to Rs 8 arba within stipulated time frame, i.e., on or before end of Ashad, 2074
Nepal SBI Bank Ltd. is the first Indo-Nepal joint-venture bank promoted by State Bank of India and Employees Provident Fund (EPF) and the Bank is rendering it.
The Bank is rendering its services through 73 business outlets (including 3 Regional Offices once each in Biratnagar, Nepalgunj and Kathmandu) and 678 dedicated team of staff. The Bank has total 86 ATMs in different parts of the country.