Kasthamandap Development Bank receives Icra Grade 4 for upcoming 25% right issue

ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 169.97 million of Kasthamandap Development Bank Limited (KDBL). The process to issue right share of KDBL is on review in SEBON. The development bank is proposing 4:1 (25%) rights issue of 1,699,742 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. NCM Merchant Banking Limited has been assigned as the issue manager for the right issue. At present, KDBL has paid up capital of Rs 67.99 crore. After issuance of 25 percent right share, paid up capital will reach Rs 84.97 crore The bank has earned net profit of Rs 19.32 crore in third quarter of 72/73 FY. The development bank has 19 branch offices and 7 ATM counters. Recently, Kasthamandap Development Bank had signed acquisition deal with Mahakali Bikas Bank Limited, Kakrebihar Bikas Bank Limited and Paschimanchal finance Limited. 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.