In the last 2 months, Securities Board of Nepal (SEBON) has provided approval to
24 companies issue their right shares. As the deadline to meet the paid up capital requirement is coming near, SEBON has also been providing approval to BFIs sooner. For example, Garima Bikas Bank’s right share application was approved in 10 days. Jyoti Bikas Bank also got approval quicker than many commercial banks.
Last year, SEBON had renounced the requirement for major BFIs to undergo credit rating, due to which the BFIs have been getting approval sooner to meet NRB’s paid up capital requirement before the end of FY 2073/74. Now, there are additional 23 companies worth Rs 11.92 arba added in
SEBON right share pipeline for approval.
This increased supply in right shares is an opportunity for the shareholders to purchase additional new shares of the companies at par value of Rs 100. On the other hand, this has created increased pressures in existing shareholders to gather money for applying for the right offers.
Altogether, 11 companies have been issuing right shares to their shareholders currently. Laxmi Bank Limited (LBL), Nepal Bank Limited (NBL), Citizens Bank International Limited (CZBIL), Nepal Bangladesh Bank Limited (NBB), Sanima Bank Limited (SANIMA), Prabhu Insurance Company Limited (PRIN), Siddhartha Development Bank Limited (SDBL), Tourism Development Bank (TDBL), Garima Bikas Bank (GBBL) and Deprosc Development Bank Limited (DDBL) have been issuing right shares to their shareholders.
Among these BFIs, Tourism, Deprosc and Laxmi are floating 1:1 (100%) right share to its shareholders. A total of 3.8 crore units right share worth Rs 3.80 arba are open.
Ongoing right shares:
| S.No |
Symbol |
Ratio |
Units |
Opening Date |
Closing Date |
Book Closure |
Issue Manager |
| 1 |
CZBIL |
10:2.5 |
13,843,379 |
2017-04-06 |
2017-05-10 |
2017-03-09 |
Sanima Capital Limited. |
| 2 |
DDBL |
1:1 |
2,579,238 |
2017-03-20 |
2017-05-08 |
2017-02-13 |
Nabil Investment Banking Limited. |
| 3 |
GBBL |
10:7 |
9,076,297 |
2017-04-27 |
2017-05-31 |
2017-04-12 |
Ace Capital Limited |
| 4 |
LBL |
1:1 |
31,590,303 |
2017-04-16 |
2017-05-21 |
2017-03-31 |
Siddhartha Capital Limited |
| 5 |
NBB |
10:8 |
32,094,069 |
2017-04-20 |
2017-05-24 |
2017-03-30 |
Global IME Capital Limited |
| 6 |
NBL |
40:23.7 |
15,431,840 |
2017-04-20 |
2017-05-24 |
2017-04-11 |
Civil Capital Market Limited |
| 7 |
SANIMA |
10:03 |
15,917,617 |
2017-04-30 |
2017-06-04 |
2017-03-31 |
CBIL Capital Limited. |
| 8 |
SDBL |
10:06 |
8,515,006 |
2017-04-20 |
2017-05-24 |
2017-04-09 |
Nabil Investment Banking Limited |
| 9 |
TDBL |
1:1 |
9,197,712 |
2017-03-26 |
2017-05-09 |
2017-03-10 |
NIBL Capital Market Limited |
| 10 |
TNBL |
10:3.5 |
1,194,796 |
2017-05-02 |
2017-06-05 |
2017-04-19 |
Siddhartha Capital Limited |
Siddhartha Insurance Company Limited (SIL), Jyoti Bikas Bank Limited (JBBL), First Microfinance Development Bank Limited (FMDBL), Sahayogi Bikas Bank Limited (SBBLJ), Gurkhas Finance Limited (GUFL), Nepal SBI Bank Limited (SBI) and Hamro Bikas Bank Limited (HAMRO) have already published their offer letters but still few days are left for the right share opening. Hamro Bikas Bank will be issuing 200% right share, Jyoti Bikas Bank will be issuing 100% right share to its shareholder and First Microfinance will be floating 50% right share.
| S.No |
Symbol |
Ratio |
Units |
Opening Date |
Closing Date |
Book Closure Date |
Issue Manager |
| 1 |
SIL |
5.2:1 |
862,125 |
2017-05-11 |
2017-06-14 |
2017-04-28 |
Laxmi Capital Market Limited. |
| 2 |
JBBL |
1:1 |
11,043,171 |
2017-05-11 |
2017-06-14 |
2017-04-27 |
Siddhartha Capital Limited |
| 3 |
FMDBL |
2:1 |
1,322,500 |
2017-05-11 |
2017-06-14 |
2017-04-12 |
Global IME Capital Limited |
| 4 |
SBBLJ |
10:03.5 |
3,146,101 |
2017-05-15 |
2017-06-19 |
2017-04-28 |
NCM Merchant Banking Limited. |
| 5 |
GUFL |
2:1 |
2,893,313 |
2017-05-15 |
2017-06-19 |
2017-05-03 |
NIBL Capital Markets Limited. |
| 6 |
SBI |
10:04 |
19,919,424 |
2017-05-21 |
2017-06-25 |
2017-05-09 |
NMB Capital Limited. |
| 7 |
HAMRO |
1:2 |
3,058,339 |
2017-05-21 |
2017-06-25 |
2017-04-24 |
NIBL Capital Markets Limited. |
Recently, Sunrise Bank Limited (SRBL), NB Insurance Company Limited (NBIL), Mirmire Microfinance Development Bank Limited (MMFDBL) and Lalitpur Finance Limited (LFC) have been approved by SEBON for the issuance of right shares. But these companies have not issued offer letter till date.
| S.No |
Symbol |
Ratio |
Units |
Issue Manager |
| 1 |
SRBL |
10:3 |
16,359,636 |
Prabhu Capital Limited. |
| 2 |
NBIL |
1:1 |
2,700,000 |
Global IME Capital Limited. |
| 3 |
MMFDB |
2:1 |
150,000 |
Prabhu Capital Ltd. |
| 4 |
LFC |
1:1 |
1,879,454 |
Global IME Capital Limited. |
| 5 |
GFCL |
10:6 |
2,722,500 |
NIBL Capital Market Limited |
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