SEBON approves to issue 80%, 30% & 50% right shares of Shangri-La Dev. Bank, Prudential Insurance & Central Finance respectively

Securities Board of Nepal (SEBON) has provided final approval to issue right shares of Shangri-La Development Bank Limited (SADBL), Prudential Insurance Company Limited (PICL) and Central Finance Limited (CFCL).  SADBL is issuing 80% right share to its existing shareholders at par value of Rs 100. The issue manager for the right issue is Prabhu Capital Limited. The development bank ‘s 12^th AGM held on Jestha 19, 2074 had endorsed 1:0.8 right shares to their shareholders. After 80% right issue, its paid up capital will reach Rs 2.44 arba from existing capital of Rs 1.35 arba. It had earned Rs 4.10 crore in the first quarter of the FY 2074/75. As per NRB’s monetary policy, SADBL should increase its paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74. After the issuance of 80% right share, the bank should issue a further Rs 6 crore capital increment. Likewise, PICL will be issuing 1:0.3 (30%) right share worth Rs 12.83 crore to its existing shareholders at par value of Rs 100. The issue manager for the right issue is NIC Asia Capital Limited. The finance company 15^th AGM held on Falgun 27, 2073 had endorsed 1:0.3 right shares to their shareholders. PICL had earned Rs 17.13 crore in the fourth quarter of the fiscal year 2073/74. It has paid up capital of Rs 42.76 crore and after issuance of 30 percent right share it’s paid up capital will rise to Rs 55.59 crore. PICL has also closed its shareholders book for its upcoming 16th AGM going to be held on Mangsir 1, 2074 where it will approve various agendas including 20% bonus share for FY 2073/74. After this 30% right and 20% bonus, its paid up capital will reach Rs 64.20 crore. As per Insurance Board's directive for non-life insurance companies, PICL should increase its paid up capital to a minimum of Rs 1 arba. Since it has not brought any right share to its agenda for this year, PICL will likely issue bonus share worth at least Rs 35.80 crore (around 56%) for the ongoing FY 2074/75 to meet up with the paid-up capital requirement. CFCL will be issuing 1:0.5 (50%) right share to its existing shareholders at par value of Rs 100. The issue manager for the right issue is NIBL Capital Markets Limited. The finance company’s SGM held on Shrawan 10, 2074 had endorsed 1:0.5 right shares to their shareholders. After 50% right issue, its paid up capital will reach Rs 79.30 crore from existing capital of Rs 52.86 crore. It had earned Rs 9.09 crore in the fourth quarter of the FY 2073/74.