Nepal SBI plans to issue right shares at a premium price. Lets read what our investors think about it?

Raj Kumar Timilsina

Chairman, Nepal Investors’ Forum

We never had such practice earlier here in Nepal. Right shares at a premium price is something new. They are trying to bring the foreign concept.

I don’t know whether or not SEBON will approve this or not, but I think there is no meaning in issuing right shares at a premium price. The bank will be collecting money from the shareholders and returning the same money to the shareholders after a year.

                                                                                                                                                                                        Bishnu Tripathi

Investor

This is the first time, right shares will be issued at a premium price. Though the criteria has not been set yet. Regulatory bodies have not taken any decisions regarding it. If the rights shares at a premium price is approved, then it is definitely good for the general shareholders. It will also be beneficial for the company. The premium price of the right shares would not be as expensive as the premium price of FPO. Right shares at premium price will also make the bank’s shareholders conscious.

Rajendra Maharjan

Investor

If Nepal SBI takes out right shares at a premium price then other banks and financial institutions would do the same and the shareholders will never get a chance to buy rights shares at a face value of Rs 100. Right shares at premium price will be beneficial for the company, but it won't be good for the shareholders. if the right shares of Nepal SBI comes at a premium price then too it would get a good response as the company is good.

Uddhab Siwakoti

Investor

Issuance of right shares in premium price is a new concept. Regulatory bodies have not given any decisions regarding it, but in case if the right shares are issued at premium price, then it will be good for the company and also be fully subscribed.