SEBON approves to issue 40% right shares of Muktinath Bikas Bank

Securities Board of Nepal (SEBON) has provided final approval to Muktinath Bikas Bank Limited (MNBBL) for the issuance of 40% right shares. Muktinath Bikas Bank had applied to SEBON on May 19, 2017 for the issuance of 6,170,865.04 units right shares worth Rs 61.70 crore in the ratio 10:4 and it received approval for the same yesterday. NIBL Capital Markets Limited has been assigned as the issue manager. Muktinath Bikas Bank is a national level development bank and as per central bank’s directive, it should increase its paid up capital to a minimum of Rs 2.50 arba by the end of the current FY 2073/74. Its current paid up capital is at Rs 1.54 arba. MNBBL's 10^th AGM held on Mangsir 4, 2073 had endorsed capital increment by the way of issuing right shares in the ratio 10:4. After the issuance of right shares, MNBBL’s paid up capital will reach around Rs 2.15 arba. To meet up with the minimum paid up capital requirement, MNBBL should issue a further capital hike of Rs 35 crore (around 16%). MNBBL has posted net profit of Rs 35.51 crore up to the end of third quarter of FY 2073/74.