SEBON approves 100% right share of Jyoti & 35% right share of Sahayogi Vikas Bank

Securities Board of Nepal (SEBON) has provided approval to Jyoti Bikas Bank Limited (JBBL) and Sahayogi Vikas Bank Limited (SBBLJ) for the issuance of their right shares. JBBL will be issuing right shares in the ratio 1:1 while SBBLJ will be issuing in the ratio 10:3.5 JBBL will be issuing a total of 1,10,43,171 units right shares worth Rs 1.10 arba to its existing shareholders at par value of Rs 100 per share. After the capitalization of 100% right shares, its paid up capital will reach Rs 2.20 arba. As a national level development bank, it should increase its paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74. It recently signed an agreement to acquire Raptibheri Bikas Bank Limited. Likewise, SBBLJ will be issuing a total of 11,01,135 units right shares worth Rs 11.01 crore to its existing shareholders at Rs 100 per share. After the capitalization of 35% right shares, its paid up capital will reach Rs 42.47 crore. As per NRB’s directive for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, SBBLJ will need to issue a further capital hike of around 17.8%.