Narayani Development Bank To Close 1:1 Right Share On Falgun 3
February 15, 2021 | Investopaper
Narayani Development Bank Limited (NABBC) is currently floating the right share to the shareholders in the ratio 1:1 from Magh 13, 2077 BS. The right issue will remain open until Falgun 3, 2077 BS.
The company is planning to sell 656,169 additional shares. Securities Board of Nepal (SEBON) had provided the approval for the right issue on January 4, 2020 [Poush 20, 2077 BS]. The company had submitted an application to SEBON on November 13, 2020 [Karthik 28, 2077].
After receiving permission from SEBON, the company is going to issue the right share. Global IME Capital Limited is the issue manager for the sale of the right share.
For the purpose of the right issue, the company has fixed the book closure date on Poush 29, 2077 BS. Thus, investors purchasing the shares of NABBC until Poush 28 are eligible to apply for the right issue.
Credit rating agency ICRA Nepal has given the bank an ‘[ICRANP-IR] C’ rating. This rating indicates that there is a high risk of not being able to meet financial obligations on time.
At current, the paid-up capital of Narayani Development Bank is Rs 6.56 crores. After the right offering, the capital will rise to Rs 13.12 crores.
Narayani Development Bank came into operation on 28th September 2001. The bank corporate office is located in Ratnanagar-1, Tandi, Chitwan.
Nepal Rastra Bank had declared Narayani Development Bank as a problematic institution in April 2014. In August 2020, NRB released the bank from the problematic status after it met the regulatory minimum capital adequacy.
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