NIBL to issue 68.16 lakh units FPO within 6 months; Paid up to reach Rs 5.45 arba

ShareSansar August 5:

Nepal Investment Bank Limited (NIBL) is going to issue Further Public Offering (FPO) of 68,16,005 unit shares soon, though the decision is yet to be endorsed by its upcoming AGM.

437th BOD meeting of the company held on 2072-04-18 has decided to issue 68,16,005 unit shares i.e 14.2857% of the current Rs 4.77 arba  paid up capital of the bank.

It is issuing the FPO as per a directive issued by the central bank to maintain at least 30% stake of public shareholders. NIBL has already crossed its deadline set by NRB of Asad end, 2072 to increase the stake of public shareholders to 30 percentages.  At present Promoter and ordinary shareholders’ share structure in the commercial bank stands at 80:20 ratios.

The FPO will be issued in premium rate which would certainly be above Rs 500 per unit, seeing the current market trading rate in NEPSE which is Rs 800 and above. The premium rate is yet to fixed and endorsed by the bank’s upcoming AGM.  

Even if NIBL issue its FPO at the minimum premium rate of Rs 400 per unit then the accumulated reserve of the company will increase by Rs 2.726 arba.  

NIBL seems to be comfortable to meet the recently issued NRB directive to increase the paid up capital to Rs 8 arba by the end of Asad, 2074.

As per the sources of ShareSansar, NIBL might publish approx. Rs 2 arba net profit figures in the Q4 report of last FY 71/72.  

At present the bank has a paid up capital of Rs 4.771 arba. After the issuance of the FPO its Paid up Capital will reach to Rs 5.452 arba (highest among all the commercial banks other than state owned commercial banks).

NIBL’s EPS (annualized) stands at Rs 42.70, net worth per share at Rs 198.19 and PE ratio at 16.58.

Nepal Investment Bank’s last traded price stands at Rs 815 as of August 4, 2015.