More than 90 Lakh units of Nabil Bank Limited Promoter Shares converted to ordinary shares; promoter public shareholding ratio stands at 60:40

Nepal Stock Exchange Limited (NEPSE) has published a notice regarding the conversion of Promoter Shares of Nabil Bank Limited (NABILP).

As per the notice published, 9,002,566 units promoter shares of Nabil Bank Limited has been converted into Public (ordinary) Share leaving Promoter Public Share ratio 60:40.

Of the total paid-up capital, 50% was held by NB International, 10% by Rastriya Beema Company, 30% by ordinary shareholders through the IPO, and the remaining 10% percent NIDC Bank. However, when the Nepal Rastra Bank (NRB) issued a directive forbidding cross-holding of shares i.e. ownership of one bank by another bank, NIDC bank had to offload its 10% share via many rounds of share auctions to the general public.

Thus, the 10% share previously held by NIDC entered market as Nabil promoter shares (NABILP) via multiple rounds of auction. So, this share had similar rights as the ordinary shares and no restrictions that is generally associated with promoter shares. These shares have been converted to ordinary shares.

The last traded price on 1st July, 2019 of Nabil stood Rs 785, whereas, of NabilP Rs 773 per scrip.