Saptakoshi Development Bank receives Icra Grade 4 for upcoming 100% right issue

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 100 million of Saptakoshi Development Bank Limited (SKDBL). The process to issue right share of SKDBL is on review in SEBON. Saptakoshi Development Bank is proposing 1:1 (100%) rights issue of 1,000,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. NMB Capital Limited has been assigned as the issue manager for the right issue. SKDBL had earned a net profit of Rs. 93.78 lakh in the fourth quarter of the current fiscal year. The paid up capital of the development bank stands at Rs 10 crore. After the issuance of 100 percent, the paid up capital will reach to Rs 20 crore. Recently, Saptakoshi Development Bank had announced 11 percent bonus share to its shareholders. The decision is subjected to approval from Nepal Rastra Bank and the bank’s upcoming Annual General Meeting (AGM). ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.