Nepal Bank FPO subscribed by merely 6.42% by 6th day ; Collects Rs 31.82 crores

The FPO issue of Nepal Bank Limited (NBL) has gathered Rs 31,82,95,600 (Rs 31.82 crore) till its 6th day from 10,769 candidates. The total issue is worth Rs 4.95 arba. Thus the collected amount is just 6.42% of the total issue amount. 

The issue was said to be shut on Ashadh 19, 2075. Be that as it may, since the issue has been undersubscribed, it has been stretched out for multi month i.e. till the third week of Shrawan, 2075

The issuance of shares at premium price will shoot the bank's capital by Rs 1.76 arba. Similarly the reserve will rise by 3.18 arba. One among the main reason behind the FPO is the dilution of governments holding to 51%.

Nepal Bank is a bank rich in assets, however, the company has an accumulated loss. The collection of premium will turn the loss into profit. The bank is believed to start a new journey then, as the shareholders are assured for dividend. However, the marketing price of the bank is hovering near the FPO price. This has raised a delimma among the investor regarding the investment in FPO.

Also read : Do you know which companies are under-writing for Nepal Bank FPO ????