NIBL issue FPO of 90.69 lakh units shares worth Rs 5.45 arba at Rs 601/unit from today; Reserve to double after FPO

Nepal Investment Bank Limited (NIB) is issuing 90,69, 388 units shares worth Rs 5.45 arba as a part of Further Public Offering (FPO) from today (Falgun 11, 2072). The FPO is being issued at Rs 601/unit.

Interested investors can apply minimum of 10 units while one can apply up to 2 lakhs units. The issue will close on Falgun 14 at the earliest. Demat A/C is not compulsory to apply for FPO of NIB.

The bank is issuing FPO as per 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 Ashad end, 2072. At present Promoter and ordinary shareholders’ share structure of the commercial bank stands at 80:20.

At present the bank has a paid up capital of Rs 6.34 arba. After the issuance of the FPO its paid up Capital will reach to Rs 7.25 arba. The reserve will be increased by Rs 4.54 arba to Rs 9.11 arba. After the FPO, this paid up capital will be the highest among all the commercial banks other than state owned commercial banks.

NIBL has earned net profit  of Rs 1.09 arba in second quarter of the current  fiscal year 2072/73.

ICRA Nepal has assigned an “[ICRANP] IPO Grade 3+”, indicating average fundamentals of the proposed FPO amounting to NPR 5,341.42million of Nepal Investment Bank Limited .

Interview: Rajan Kumar Amatya, Dy. General Manager of NIBL,: Consistent return to the shareholder is our priority