SEBON approves 25% right share of Citizens Bank & 50% right share of Prabhu Insurance

Securities Board of Nepal (SEBON) has provided approval to Citizens Bank International Limited (CZBIL) for issuing right shares in the ratio 10:2.5. The commercial bank will be issuing 1,38,43,379 units right shares at the par value of Rs 100 per unit. Sanima Capital Limited has been assigned as the issue manager. CZBIL’s paid up capital currently stands at Rs 5.53 arba. After the issuance of 25% right shares, its paid up capital will reach Rs 6.92 arba. As per NRB’s requirement for all commercial banks to increase their paid up capital to Rs 8 arba by the end of FY 2073/74, CZBIL will need to increase its capital by a further 15.6%. Similarly, SEBON has also given a go-ahead to Prabhu Insurance (PRIN) for the issuance of right shares in the ratio 2:1. Prabhu Insurance will be issuing 19,25,079 units right shares worth Rs 19.25 crore to its existing shareholders at a par value of Rs 100 per unit. Prabhu Capital Limited is the issue manager for the right. Prabhu Insurance has earned Rs 2.97 crore in the second quarter of the FY 2073/74. Its net earnings from premium has increased to Rs 22.25 crore up to the second quarter, an increment of only 3.5% as compared to the corresponding quarter last year. It had distributed 17% bonus share to its shareholders this year. After the issuance of 50% right, its paid up capital will reach Rs 57.75 crore.