SEBON approves 70% right share of Garima Bikas Bank; Himalayan Gen Insurance’s 166.67% right in pipeline

Securities Board of Nepal (SEBON) has provided final approval to Garima Bikas Bank Limited (GBBL) for the issuance of right shares in the ratio 10:7. GBBL will be issuing 90,76,296.66 units right shares at a face value of Rs 100 per share to its existing shareholders. Ace Capital Limited has been appointed as the issue manager for the right issue. Garima Bikas Bank had earned net profit has of Rs. 15.95 crore in second quarter of the fiscal year 2073/74. Its paid up capital stands at Rs 1.29 arba and after issuance of 70% right share, its paid up capital will reach Rs 2.19 arba. As per NRB’s requirement 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, GBBL should increase its capital by a further 13.85%. Likewise, Himalayan General Insurance Company Limited (HGI) has been added in SEBON pipeline to seek approval for the issuance of 166% right shares. HGI is seeking approval to issue 64,20,000 units right shares to be floated to its existing shareholders at par. NMB Capital Limited has been assigned as the issue manager. Himalayan General Insurance has earned net profit of Rs 4.03 crore in the second quarter of the fiscal year 2073/74 as per its unaudited report. Its paid up capital remains at Rs 38.52 crore. After the issuance of 166% right share, the paid up capital will rise to Rs 1.02 arba—thereby meeting Insurance Board’s directive for all non-life insurance companies to increase their paid up capital to a minimum of Rs 1 arba by the end of Ashad, 2075.