Nepal Bank to issue FPO from Ashad 15th ; Minimum of 50 units acceptable

Nepal Bank has publushed its offer letter for the Further Public Offering (FPO).

The company will issue 1,76,84,858 unit shares at a price of Rs 280. The issue will commence on 15th Ashad and end on 19th Ashad, 2075. (if early). The offering can extend till 13th Shrawan in case of under-subscription. 

Siddhartha Capital has been appointed as the issue manager for the issue. 

Applicants can apply for minimum 50 units whereas maximum unit is the entire fpo units. Institutions can apply for the shares from the very first day of the public issue. 

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.