SEBON approves 30% right share of Kamana Bikas Bank

Kamana Bikas Bank Limited (KMBL) has received approval from Securities Board of Nepal (SEBON) to issue right shares worth Rs 24.13 crore to its shareholders. KMBL will now be issuing 24,13,137.60 units shares in the ratio 100:30, each to be floated to its existing shareholders at par value of Rs 100 per share. NIBL Capital Markets Limited is the issue manager for the right share of Kamana Bikas Bank. KMBL has earned net profit of Rs 14.47 crore in the third quarter of the ongoing fiscal year 2073/74. It is currently under merger process with Sewa Bikas Bank, for which the share swap ratio has been fixed at 1:1. After their merger, the merged entity will be named Kamana Sewa Bikas Bank Limited and will have a paid up capital of Rs 2.06 arba. As per NRB’s directive for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, the merged bank will need to issue a further capital hike of around Rs 44 crore (around 21.50%).