NMB Bank to issue 1.14 crore units FPO shares at Rs.333 per unit from today; LTP stands at Rs 367; minimum units to apply is 10 units

NMB Bank Limited is issuing a total of 1,14,15,163 units further shares at a price of Rs 333 per share (a premium of Rs 233 per share in addition to par value of Rs 100 per share) from 30th Jestha, 2075 i.e. today. The latest closing date for this FPO issue is 3rd Ashad, 2075 if fully subscribed or else this FPO issue can be extended up to 28th Ashad, 2075.

The minimum units to apply for this FPO is 10 kitta i.e. Rs 3330 and maximum is (0.5% of the total issue) i.e. 57,070 units amounting Rs 1,90,04,310. 

Only general public can apply for this FPO. Institutional investors can apply only if the issue does not get subscribed within stipulated time period.

NMB’s current paid-up capital remains at Rs 6.46 arba with 60% promoters and 40% general public holding. After the capitalization of all FPO shares, its paid-up capital will increase to Rs 7.60 arba with 51 and 49 percentage share holding of promoters and general public respectively. Premium amount of Rs 233 per share will be added to the bank’s share premium account under Reserve fund, after which its reserve will grow by massive Rs 2.65 arba. However, the bank will still be short by Rs 40 crore (around 7%) to meet the paid-up capital requirement of Rs 8 arba. The premium thus collected can be capitalized by issuing bonus shares.

ICRA Nepal has assigned “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed FPO issue to NMB Bank.

Citizen Investment Trust is the issue manager for the FPO. Interested shareholders can collect the application forms from Citizen Investment Trust, and all C-ASBA-approved members banks and financial institutions and their branch offices.

NMB has posted net profit of Rs 1.47 arba till the end of third quarter of ongoing fiscal year 2074/75. It had distributed 19% bonus shares to its shareholders for FY2072/73 and is yet to conduct AGM for the last FY2073/74.

Its LTP stands at Rs 367.