Siddhartha Bank applies to SEBON for issuing 10:1 right share

Siddhartha Bank Limited (SBL) has applied to Securities Board of Nepal (SEBON) to seek approval for issuing right shares in the ratio 10:1. SBL applied to SEBON on Bhadra 19, 2074 to issue a total of 6,826,117.19 units right shares worth Rs 68.26 crore, each to be floated to its shareholders at par value of Rs 100 per share. Laxmi Capital Market Limited is the issue manager. The allottees of recently concluded 30% right share and allottees of unclaimed right shares in auction are also eligible to apply for this upcoming 10% right share. SBL has posted net profit of Rs 1.41 arba in FY 2073/74. 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%).