Kathmandu. Narayani Development Bank, which has been issuing right shares after losing for the last 4 years, has extended the deadline for applying for the shares.
The bank had started issuing right shares from September 2. The deadline to apply for 100 percent right shares has been extended after the applications were not received as per the demand. The last date to apply is October 9.
The bank is issuing right shares in the ratio of 1:1. The bank is issuing 26,24,676 units of right shares at a face value of Rs 100 per share.
The bank has closed its book on August 24. Shareholders who have remained in power till August 8 can apply for the shares.
Global IME Capital has been appointed as its issue manager. The interested bidders can bid for the shares from Narayani Development Bank’s central office at Yagyapuri, Tandi, Parsa and Narayangadh branch offices. Similarly, the interested bidders can apply for the shares from Securities Board of Nepal (SEBON) and Bank Financial Institutions (BFIs) which are members of the Securities Board of Nepal (SEBON).
The bank is issuing right shares with an aim to maintain capital fund adequacy. The bank has been incurring a net loss for the last four years. The bank has also issued right shares to expand loans in various sectors specified by the Nepal Rastra Bank. The bank plans to expand its 2 branches with the proceeds from the sale of right shares.
The bank said it will open two branches at a cost of Rs 9 million from the money raised from the right shares. Similarly, the bank aims to increase investment in securities, government bonds, mutual funds by issuing right shares. The bank said it will invest Rs 25.34 billion in securities, government bonds and mutual funds.
The bank has issued the right shares to maintain the minimum paid-up capital and capital fund adequacy prescribed for the institution as per the directive issued by Nepal Rastra Bank on 2077-04-21 while releasing the institution from the list of problematic financial institutions and the directive dated 2081-11-20.
प्रतिक्रिया दिनुहोस्