The company obtained approval from Securities Board of Nepal (SEBON) to issue 1:0.35 right shares. As per the approval, it is issuing 582,000 units of shares at a face value of Rs 100 from August 27..
Currently, the company has a paid-up capital of Rs 452 million which will reach Rs 610.2 million after the right issue.
In this regard, the company closed its book on July 28, thus the shareholders registered in its book till July 27 are eligible to apply for the right shares.
Informatics Credit Rating Nepal has assigned B rating to the issue indicating huge risks.
The company has appointed Muktinath Capital as issue manager. The interested existing shareholders of the company can apply from Muktinath capital and designated branches of Multipurpose Finance and Muktinath Bikas Bank.They can apply from all C-ASBA approved BFIs and Meroshare.
As per the company, it will mobilize the fund to maintain Rs 20 million liquidity with NRB, to extend loans of Rs 38.2 million, to expand branches with Rs 20 million and to purchase government bond of Rs 80 million.
