SEBON approves 40% & 100% right share of Nepal SBI Bank & Lalitpur Finance respectively

Securities Board of Nepal (SEBON) has provided approval to Nepal SBI Bank Limited (SBI) and Lalitpur Finance Limited (LFC) for the issuance of their right shares. SBI will be issuing right shares in the ratio 10:4 while LFC will be issuing right shares in the ratio 1:1. NMB Capital Limited is the issue manager for right share of Nepal SBI Bank. SBI will be issuing a total of 19,919,423.60 units right shares worth Rs 1.99 arba, each to be floated to its existing shareholders at par value of Rs 100 per share. Its paid up capital after recently issued 67,767.87 units FPO shares and 28% bonus share (for FY 2072/73) stands at Rs 5.03 arba. After issuance of this 40% right share, its paid up capital will reach Rs 7.03 arba. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, SBI will need to issue a further capital hike of Rs 97 crore (13.80%). Likewise, Global IME Capital Limited is the issue manager for right share of Lalitpur Finance Limited. LFC will be issuing a total of 18,79,454 units right shares worth Rs 18.79 crore. After the issuance of this 100% right share, its paid up capital will reach Rs 37.58 crore. As per NRB’s directive for all national level finance companies to increase their paid up capital to a minimum of Rs 80 crore by the end of FY 2073/74, LFC should issue a further capital hike of Rs 42.42 crore (113%).