SEBON approves to issue 50% Right Share of First Microfinance; Jyoti & Purnima Bikas Bank’s 100% & 25% Right Share respectively added in pipeline

Securities Board of Nepal (SEBON) has given final approval to issue 2:1 (50%) right shares of First Microfinance Bikas Bank Limited (FMDBL). Global IME Capital Limited has been assigned as the issue manager for right share issue. First Microfinance’s 7^th AGM held on Ashwin 19, 2072 had approved 50% right share to its existing shareholders. The microfinance company is proposing to issue 1,322,500 units shares at the face value of Rs 100 each to be issued to the existing shareholders at par. First Microfinance has earned net profit of Rs 3.36 crore in the second quarter of the fiscal year 2073/74 .Its paid up capital stands at  Rs 26.45 crore and after the issuance of 50% right share  the paid up capital will rise to Rs 39.67 crore. ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating average fundamentals to the proposed rights issue Meanwhile, Purnima Bikas Bank Limited (PURBL) and Jyoti Bikas Bank Limited (JBBL) have been added in Securities Board of Nepal (SEBON) right share pipeline for approval to issue 4:1 (25%) & 1:1 (100%) respectively. Siddhartha Capital Limited has been assigned as the issue manager for both right share issue. Purnima Bank’s 9^th AGM held on Poush 23, 2073 had approved 25 % right share i.e 880,962.82 units to its existing shareholders. PURBL paid up capital stands at Rs 35.23 crore. After the issuance of right shares, the paid up capital of the bank will reach over Rs. 44.03 crore. It has earned net profit of Rs 4.66 crore in the second quarter of the current fiscal year 2073/74. As a 3-district level development bank, it will need to increase its paid up capital to Rs 50 crore by the end of FY 2073/74, for which it is short by 13.5%. Likewise, JBBL’s 9^th AGM held on Poush 28, 2073 had endorsed 100% right share i.e  11,043,171 units to its existing shareholders. JBBL paid up capital stands at Rs 1.10 arba. After the issuance of right shares, the paid up capital of the bank will reach over Rs. 2.2 arba. It has earned net profit of Rs 13.54 crore in the second quarter of the current fiscal year 2073/74. Jyoti Bikas Bank has signed a Memorandum of Understanding (MOU) on Chaitra 15, 2073 to acquire Raptibheri Bikas Bank.