Nepal Bank proposes the price for FPO at Rs 280 ; Issue likely within this year

The most talked about question has finally been answered as Nepal's first bank has fixed the price for its FPO.

Nepal Bank had already endorsed the agenda for further public issue from its AGM and now the company has taken a step ahead by fixing the issue price. As per the Board meeting held yesterday, the company will float 1,76,84,858 unit shares at Rs 280. The decision is however subject to approval from the regulatory board. 

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%.