FPO of Nepal Bank fixed at Rs 280; issue date to be fixed after approval from SEBON

According to the 58th AGM of Nepal Bank Limited, the decision had been passed to issue 1,76,84,858 units of shares in Further Public Offering (FPO). The price of FPO issuance has been fixed at Rs 280. The par value of the scrip is Rs 100 and the remaining Rs 180 is the premium of the issue. According to the CEO of Nepal bank, the issue will be at Rs. 280 itself and in normal model. The Last Trading Price of NBL as on Jestha 11, 2075 stands at Rs. 336. Similarly after the issuance of FPO the paid-up capital of Nepal Bank Limited will go up by Rs. 1.76 arba and Rs. 3.18 arba in reserve.

For the issuance of FPO, the bank has appointed Siddhartha Capital as the issue manager. Similarly there will be 8 to 10 underwriters and the underwriting has been done in 100%. Since the agreement with underwriters is yet to be signed, the fixed list of the names of underwriters isn’t out yet.

Similarly regarding the issue date, the approval is yet to be received from SEBON. So if everything goes as per the plan, the issue is likely to float within this fiscal year.

After the issuance, the stake of government in Nepal Bank Limited will be maintained at 51%. Currently, government holds 62% stake.