Standard Chartered Bank proposes FPO of 2,558,140 unit shares at Rs 1,290 per unit; decision is yet to approve from SEBON; 100% bonus is expected from premium collection & reserve of FY 73/74

Standard Chartered Bank Nepal Limited (SCB) has proposed further public offering worth Rs. 330 crore at Rs. 1,290 per unit. As per the notice published in NEPSE today, the 30^th AGM of the bank held on December 15, 2016 and the 350^th BOD meeting held yesterday had approved the following:

• Share price of Rs. 1,290 (premium of Rs. 1,190 added to the par value of Rs. 100)
• To float 2,558,140 shares at Rs. 1,290 for the general public, to raise capital of Rs. 3.3 billion

Standard Chartered Bank's paid up capital after the capitalization of bonus shares of FY 2072/73 (@33.33%) stands at Rs 3.75 arba. Capitalization of the proposed 25.58 lakh units FPO shares increases the paid up capital to around Rs 4 arba. As per the bank, the premium collected from the FPO (premium of Rs 1,190 per unit) will be used to distribute dividend for the FY 2073/74. As such, Rs 3.044 arba is seen to be collected as premium and distributed to its shareholders. After the capitalization of this amount, the final paid up capital will reach Rs. 7.05 arba. This makes its capital shy of 13.57% to reach Rs 8 arba. Overall, Standard Chartered Bank will need to provide bonus share worth around Rs. 4 arba (100%) after the FPO to comply with the NRB's directive to hike its paid up capital to Rs 8 arba. Also read: ShareSansar's initial interpretation on Standard Chartered FPO and Capital Plan

See how much capital commercial banks need to increase by this fiscal year to reach NRB’s requirement (with projected EPS)