Nepal Bank approaches Sebon for FPO approval ; to float 1.76 crore units at a premium price

Nepal's first bank, Nepal Bank has approached sebon for the permission to float FPO. The company, if receives an approval, will float 1,76,84,858 units at a premium price. The bank had applied for this on 15th Jestha, 2075. 

The commercial bank had previously decided to float the shares at Rs 280. This is however, subject to approval from the regulatory board. The Securities board, if finds it inappropriate, can direct the company to amend it. 

The company has already signed a pact with Siddhartha Capital for issue managing purpose. Similarly, there will be 8-10 underwriters who will commit to buy the shares, in case of worse condition. 

If further public issue happens as planned, the company will earn an extra premium of hefty Rs 3.18 arba. Similarly, the capital will hike to Rs 9.81 arba and government's holding will dilute to 51%.