RBBL begins process to sell promoter shares of NIBL, Nepal Aawas Finance

KATHMANDU, Aug 29:

Rastriya Banijya Bank Ltd (RBBL) has said that it will go for partial allotment if the share it holds in Nepal Investment Bank Ltd (NIBL) and Nepal Aawas Finance Limited (NAFL) are not fully subscribed.

RBBL has decided to sell its 6,220,066 units of shares of NIBL and 198,497 units of NAFL through open bidding after its efforts to find buyers interested to buy shares in bulk went in vain.

“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 they will be oversubscribed,” said RBBL CEO Krishna Prasad Sharma told a press meet in Kathmandu on Friday.

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.

“If all shares do not get subscribed, we will go for partial allotment later on,” Sharma added.

According to the bank, interested firms and individuals can submit their sealed bidding, which will be opened from Sunday to till September 15, at 28 collection centers across the country. The bank has fixed Rs 530 as the minimum bidding price for NIBL share and Rs 101 for NAFL share. Interested bidders must place bid for a minimum of 100 units, according to the bank.

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. Likewise, NAFL had also distributed 8 percent dividend to its shareholders in the last fiscal year.

Praveen Raman Parajuli, CEO of Nabil Investment Banking Ltd - the issue manager for RBBL -- said that they hope all the shares would be subscribed.

   

Source: Republica