Nepal SBI FPO Update: oversubscribed by 42.85 times till 3rd day; issue closing today

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 42.85 times. The issue collected Rs. 1.36 arba on the third day from 15,880 applicants. Altogether Rs 2.82 arba has been collected from 31,377 application forms. “The figures are only approximate and the final data may vary”, added the official. The FPO applications is closing today (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.