SEBON approves to issue 10% & 15% right shares of Siddhartha Bank & Pokhara Finance respectively

Securities Board of Nepal (SEBON) has given final approval to issue 10:1 (10%) right shares of Siddhartha Bank Limited (SBL) and 1:0.15 (15%) right shares of Pokhara Finance Limited (PFL). SBL will be issuing 68.26 lakh units right shares worth Rs 68.26 crore to its existing shareholders at a face value of Rs 100 per share. Laxmi Capital Market Limited has been assigned as the issue manager for right share issue. Its paid-up capital currently stands at Rs 6.82 arba, and after this 10% right share issuance, its paid-up capital will reach Rs 7.50 arba. As per NRB’s directive for commercial banks to increase their paid-up capital to a minimum of Rs 8 arba, SBL should further increase its paid-up capital by Rs 50 crore (around 6.67%). It had posted net profit of Rs 22.73 crore in the first quarter of the FY 2074/75. Its LTP stood at Rs 380 as of last trading day. Pokhara Finance’s 20^th AGM had approved to issue 15 percent right share to its shareholders. The finance company will be issuing a total of 983,682.74 units right shares worth Rs 9.83 crore to its shareholders at the par value of Rs 100. NIBL Capital Markets Limited has been assigned as the issue manager for right share issue. PFl had issued 9,83,682 units FPO shares worth Rs  21.64 crore at Rs 220 per unit on Shrawan 29, 2074. After the FPO, its paid up capital reached around Rs 65.57 crore from Rs 55.74 crore. Finally, after proposed 15% right share issuance, its paid up capital will reach Rs 75.40 crore. As a national level finance company, it should hike its paid up capital to a minimum of Rs 80 crore by the end of FY 2073/74. It had posted net profit of Rs 1.48 crore in the first quarter of the FY 2074/75. Its LTP stood at Rs 210 as of last trading day.