SEBON approves 1:1.25 right shares proposal of Nepal Finance Limited

The Securities Board of Nepal has approved the right shares proposal of Nepal Finance Limited today, i.e. Ashwin 19.

Nepal Finance Limited can now issue the right shares in the ratio of 1:1.25 to its shareholders.

Thus, a total of 16,97,506.25 shares will be issued as the right shares. This will take the company's paid-up capital to Rs. 30 crores.

Since Rs. 80 crore is the minimum capital requirement for Finance companies, Nepal Finance Limited has also proposed another 1:1.75 right shares issue after this issue is complete. This proposal is yet to be approved by SEBON. These two issues combined will take the company's paid-up capital to Rs. 84 crores, hence fulfilling the capital requirement.

Prabhu Capital is appointed the issue manager for the 1:1.25 right shares issue.

Earlier, Nepal Finance (NFS) had been relieved from the problem-ridden state by Nepal Rastra Bank (NRB) on Mangsir 25, 2076. NFS has begun its operation from Mangsir 26, 2076.

The business of the finance company was halted from Mangsir 17, 2071 by NRB. The finance company was directed to halt all services like deposit collection, issuing loans etc. However, as per the decision of the bank and NRB, the bank has been relieved of the problematic state.

NFL is one of the oldest finance company licensed by NRB.