ICRA Nepal assigns grade 3 to 55% right issue of Citizens Bank

ICRA Nepal has assigned an “[ICRANP] IPO Grade 3”, indicating below-average fundamentals to the proposed rights issue amounting NPR 1711.82 million of Citizens bank International Limited (CZBIL). The process to issue right share of CZBIL is on review process in SEBON. The development bank is proposing 10:5.5 (55%) rights issue of 17,118,163 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. Global IME Capital Limited has been assigned as the issue manager for the right issue. CZBIL had earned a net profit of Rs.  41.84 crore in the second quarter of the current fiscal year. The paid up capital of the bank stands at  Rs 3.06 arba . After the issuance of 55 percent, the paid up capital will stand at Rs 4.74 arba. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.