Right share worth Rs.4.51 arba in pipeline; 7 BFIs issuing right share of Rs 3.59 arba, 4 BFIs yet to publish offer letter

Nepal Rastra Bank, through its Monetary Policy, had directed Bank and Financial Institutions (BFIs) to increase their paid up capital by the end of Ashad 2074. As the BFIs have been directed to raise their paid-up capital by the central bank, many companies are issuing right shares in order to meet the prescribed capital requirement. There are altogether 7 companies that have been issuing right shares to its shareholders. Siddhartha Bank (SBL), Agricultural Development Bank (ADBL), Araniko Development Bank (ARDBL), Muktinath Bikas Bank (MNBBL), Miteri Development Bank (MDB), Guheswori Merchant Banking (GMFIL)and Laxmi Laghubitta Bittiya SansthaLimited (LLBS) have been issuing right shares to its shareholders. Among these BFIs, Laxmi Laghubitta  is floating highest units of right share. It has been floating 1:1(100%)right share to its shareholders. Likewise, Agricultural Development Bank has also floated 1.96 crore units right share which is amassing huge money from its shareholders. A total of 3.59 crore right share are opening till date worth Rs 3.59 arba of these 7 companies to be collected from the shareholders Likewise NMB Microfinance (NMBMF), Seti Finance (SETI), Janata Bank (JBNL), Kasthamandap Development Bank (KDBL), Himalayan Bank (HBL) and Triveni Bikas (TBBL) Bank have already published offer letter still few days are left for the right share opening. Seti Finance will be issuing 150% right share and NMBMF microfinance will be issuing 120 % right share to its shareholders. Janata Bank Limited has offered 50% right share worth Rs 1.03 arba. Machhapuchchhre Bank Limited (MBL), Nagbeli Laghubitta Bikas Bank Limited (NBBL), Western Development Bank Limited (WDBL) and Sewa Bikash Bank Limited (SEWA) right share has beenapproved by Securities Board of Nepal (SEBON). But these companies has not issued offer letter till date 14 BFIs are still in the pipeline of SEBON to issue total of 4.51 crore units’ worth Rs 4.51 arba right shares. And many companies have proposed for right share but yet to apply in the board Lalitpur Finance, Saptakoshi Development Bank, Neco Insurance and Namaste Bittiya Sanstha will be issuing 100% right share to its shareholders. Api Power Company 200% and Manjushree Finance 175% right share are waiting for board approval. As the deadline to meet the paid up capital requirement is nearing, many companies are in the verge to issue right share. The main issue now arises after the right issue will be to increase the business along with the increment in the paid up capital.