Prabhu Bank Ltd likely to issue 20% Right Share

Prabhu Bank Limited (PRVU) is in the final phase of acquiring Grand Bank and most probably  the integrated business will start by the end of Bhadra.

Special General Meeting (SGM) of Prabhu Bank Limited (PRVU) held on 7th Shrawan, 2072 had approved the acquisition of Grand Bank Limited. Prabhu Bank Limited (PRVU) acquiring Grand Bank Limited (GRAND) has been the first ever acquisition of a commercial bank by another in Nepal.

Ashok Sherchan, CEO of Prabhu Bank said, “ Prabhu bank has applied for the final approval in NRB and most probably NRB will be providing a final nod for joint operation within this week.”

Upon the NRB endorsement, the shareholders holding 100 units of Prabhu Bank shares will get  21.45 shares in premium, and the shareholders holding 100 units of Grand Bank will get 65.58 shares of Prabhu Bank, for that the separate book closure date will be published.

“Integrated operation of both the banks will commence by the end of Bhadra,”added Sherchan.

Prabhu Bank’s will also  be issuing 20 percent right shares to its shareholders within the a month.

“The right share has already received the ICRA rating and a separate book closure date will be published for it,” Sherchan said.

Nabil Investment Banking Limited has been assigned as the issue manager for the right issue.

Prabhu Bank has posted a net profit of Rs 1.03 arba in the fourth quarter of the last  fiscal year. The company reserve figure stands Rs 47.69  crore plus during the same period. The bank will pay out stock dividend this time to its shareholders from the profit of the last fiscal year.  The bank will not be providing any cash dividend as its NPL is at 7.39 percent.

However, any dividend will be claimed only on Rs 3.20 arba paid up capital.

The paid up capital of Prabhu will reach to Rs 5.92 arab after the issuance of 20% right share and after the finalization of the ongoing acquisition of Grand Bank and Nepal Development Bank.

It seems like Prabhu Bank will easily meet the paid up capital requirement of 8 arba within fiscal year  2074. -SSN

Laxmi Laghubitta IPO oversubscribed by over ten times in two days

The Initial Public Offering (IPO) worth Rs 3 crore floated by Laxmi Laghubitta Bittiya Sanstha Limited on June 24 has drawn more than 29 crores in just first two days.

According to Nabil Investment Banking Limited which is managing the issue, the IPO drew more than 18 crore in the first day itself, and more than Rs 11 crore has been collected at its office by the second day yesterday.“We are still collecting the applications filed the second day from the collection centers,” Nabil Investment’s CEO Pravin Raman Parajuli told. It means that the figures will rise further.

The microfinance institution based in Kathmandu has stated that out of the 3 lakh primary shares being floated at a face value of Rs 100, altogether 15,000 units have been set aside for the mutual funds and 9,000 units for its staff.

The issue would close on June 27, or by July 8 at the latest.Laxmi Laghubitta has an authorized capital of Rs 10 crore, issued capital of Rs 10 crore, and the paid-up of Rs 7 crore.Following the IPO, its paid-up capital will also rise to Rs 10 crore.

The class ‘D’ financial institution, which has been in operation since for the last three years, has a reserve profit of Rs 3.85 crore by the end of the last fiscal year, and projected figure of Rs 24.90 crore by the end of the current fiscal year. Its EPS stood at 0.29, which is expected to grow to 2.63 by the end of the current fiscal and up to 20.52 by the fiscal year 2072/73.

Nabil offers 40% cash & 25% bonus share, AGM on Dec 27

Nabil Bank Limited has proposed 65 percent dividend – 40 percent cash and 25 percent bonus share — to the shareholders from the net profit it registered in the last fiscal year 2069/70.

The commercial bank’s board of directors has just taken the decision to this effect, which is, however, subject to the approval of Nepal Rastra Bank and the Annual General Meeting of the commercial bank.

Mega Bank’s profit grows by 291 percent in Q1

Mega Bank Nepal Limited has posted an astounding 291 percent growth in net profit in the first quarter of the current fiscal year 2070/71.

According to the unaudited quarterly report the bank has published today, its net profit surged to Rs 10.18 crore from Rs 2.60 crore in the corresponding quarter of the last fiscal year.

IPO issue worth 3.97 arba & rights shares of 6.18 arba in the pipeline

Altogether 17 companies, including a commercial bank, have applied at the Securities Board of Nepal (SEBON) to issue the Initial Public Offer (IPO), which collectively comes to the tune of Rs 3.97 arba.

Moreover, 34 companies have sought the regulatory body’s approval for issuance of rights shares worth Rs 6.19 arba, according to SEBON sources.

Mega Bank shares trading by 2nd week of Sept, Nabil Investment, its Share Registrar

Mega Bank Nepal Limited has appointed Nabil Investment as its Share Registrar. Mega Bank CEO Mr Anil Keshary Shah and CEO of Nabil Investment Banking Limited, Mr. Praveen Raman Parajuli, signed on the agreement at Mega Bank’s Head Office in Kantipath.

Century Commercial Bank IPO public share issue likely from 2nd week of Bhadra, 2070

Century Commercial Bank is all set to issue primary shares aimed at general public likely from 2nd week of Bhadra, 2070 . The bank has already appointed Citizen Investment Trust, Nabil Investment, Growmore Merchant, Civil Capital and NCM Merchant as issue managers.

Nabil Balance Fund-1 NAV improves, reaches to Rs 10.22

 Nabil Balance Fund-1, a mutual fund scheme of Nabil Mutual Fund that is managed by Nabil Investment Banking Limited, a subsidiary company of the Nabil Bank Limited, has registered a slight growth in its net asset value (NAV).
The NAV of the closed-end 5 years mutual fund scheme increased by Rs 0.25 to Rs 10.22 per unit from Rs 9.97 per unit last month.
The mutual fund scheme is sponsored by Nabil Bank Limited.