RBB to auction 57.79 lakhs Promoter shares of NIBL at Rs 400 this time

ShareSansar, November 25:

Rastriya Banijya Bank Limited (RBBL) is again going to sell its remaining 57,96,757 units promoter share (including 15 percent bonus shares of FY 70/71) in auction of Nepal Investment Bank Limited to the general public within the end of Mangsir, 2071.

The CEO of the Rastriya Banijya Bank, Krishna Prasad Sharma told ShareSansar today that the BoD meeting held yesterday of the bank has decided to keep the minimum bid price only Rs 400 per share this time.

He also informed that the investors who have applied for the NIBL promoter shares last time in the month of Bhadra, 2071 will get the certificate within 2-3 working days and also they will get the 15% bonus and 25% cash dividend distributed by the NIBL from the profit of 2070/71 fiscal year. Besides, the trading of the auctioned shares will also happen soon after the distribution of the shares upon permission given by the Nepal stock exchange.

Earlier in August, RBBL has offered to sell its 6,220,066 units of shares of NIBL through open bidding at the minimum bid price of Rs 530 per share. But at that time, the company was able to sell only 11,79,408 units shares to the 750 bidders in total.

“We are offloading our shares as we must abide by the regulator´s directive. As these promoter shares are very lucrative, we are confident that this time they will be oversubscribed,” said RBBL CEO Krishna Prasad Sharma told to sharesansar.

RBBL has decided to offload shares as per the directive of the Nepal Rastra Bank (NRB) -- the central monetary authority -- that require all banks and financial institutions (BFIs), which have cross holding in other BFIs, to offload such shares by the end of fiscal year 2013/14.

NIBL is one of the top dividend distributing banks of the country. The bank had offered 35 percent dividend - 25 percent cash and 10 percent bonus shares - to shareholders from the net profit it earned in the last fiscal year 2012/13.