Issuance of FPO by Nepal Investment Bank

Kathmandu January 25- Nepal investment bank is issuing equity shares as Further Public issue (FPO) for general investors on mid-February. MoU has been signed between the bank and Citizen Investment Fund for issuance of FPO. As per the MoU, Bank will issue FPO priced Rs. 100 with premium of Rs. 501. Thus, bank will issue 9 million 70 thousands shares worth of Rs. 5 billion 450 million 702 thousands.

Bank is issuing FPO in premium in order to increase general investors share in the bank to 30% from existing 20%. BOD meeting held on August 03 decided to issue FPO and sent proposal to NRB for approval while AGM of the bank held on November 16 endorsed the proposal.

ICRA Nepal has ranked the FPO as 3+.

Bank will be issuing 8 million 615 thousands 919 units of shares for general public at Rs. 601 while it will issue 453 thousands 469 units of shares at Rs. 360 for its employees.

Having Rs. 6 billion 340 million paid up capitals, Nepal investment bank seems to reach target of Rs. 8 billion paid up capital required as per NRB after the FPO while issuing bonus share within next 2 years.