Tuesday, July 2, 2013

Rastriya Banijaya Bank Ltd. (RBB) to sell Nepal Investment Bank's 55 Lakh worth of promoter share.

Rastriya Banijaya Bank Ltd. (RBB) is all set to divest its promoter stake in Nepal Investment Bank. RBB owns 55 lakh promoter shares of NIB, which is 15 percent of NIB’s total capital.

RBB has already formed a committee under Joint-secretary at the Finance Ministry Rajan Khanal to fix the minimum price for the shares. The shares would be sold through auction above the minimum price set by the committee.

The minimum price would be fixed within the month of Asar, 2070.

NIB’s general shares traded last at Rs 737 per unit. The bank’s promoter shares has not been bought or sold since Poush 29, when the shares were valued at Rs 410.

Normally, the price of promoter shares is half the price of general shares.

Going by the latest price at which NIB’s promoter share is trading, RBB will get Rs 2 arba, 25 crore, 50 lakh from the sale. At present, RBB’s reserve is negative by 6 arba 85 crore, which is expected to come down after the shares are sold.

RBB is planning to sell the promoter shares to big and institutional investors like Employees Provident Fund, Citizen Investment Trust and private insurance companies.

The move to sell promoter shares is in line with the Nepal Rastra Bank’s policy against cross-holding (publicly traded companies, like commercial banks and finance institutions, owning shares of similar companies).
Source : sharesansar

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