7 billion worth of shares in the market in near future

Kathmandu December 9- Those who wants to invest in capital market are getting new opportunity as, many companies are preparing to issue equity and right shares worth of Rs. 7.5 billion in near future.

Companies are seeking permission  from the regulatory body, Nepal securities board for issuance of shares. After the approval of the board, companies will forward the process . As per the NRB directive to increase paid up capital, many banks and financial institutions have asked for permission to the board to issue rights shares. General shares have good appeal on general public and  new investors as secondary market have relatively greater risks.

Generally, general shares and right shares are priced Rs. 100. Right shares are proritize to old shareholders.

Security board has received application to issue general shares worth of Rs. 1 billion 61.1 million and right shares worth of Rs. 6 billion 597 million 656 thousands. Nepal Industrial Development Corporation is seeking permission to issue general shares worth of Rs. 184 million 176 thousands. Similarly, Mercantile finance, Green Development Bank, Mero microfinance bittya sanstha have also asked permission to issue general shares.

According to board, Mercantile finance and Green development bank is issueing Rs. 18 million and 100 million worth of general shares. Many commercial bank and more development bank are issueing right shares in order to increase their paid up capital.

Recently, Sunrise bank and Prabhu bank are seeking permission from securities board to increase paid up capital through right shares. Sunrise bank is issueing right share in proportion to  2:3 while Prabhu Bank is issueing in proportion to 1:2.

Prabhu bank is issuing 6 million 417 thousands units of right shares worth of Rs. 641 million 777 thousands. Besides, it is also in process with Grand bank for merger.NRB suggests to issue right shares in order to increased paid up capital to Rs. 8 billion.

According to Securities board, Gandaki Development Bank, Sangrila Development Bank, Lalitpur fiance, Excel Development Bank, Alpine Development Bank, Kanchan Development Bank and others are in process of issueing right shares while some have already issued it.

Board has been questioning and retaining information from some of the banks regarding issuance. Gandaki development bank is issuing 1:3 right share that means, it is issuing 1 million 56 thousands units of shares worth of Rs. 105 million 600 thousands. Similarly, 1 million 840 thousands units of shares worth of Rs. 184 million are coming from Sangrila Development Bank.

Innovative development Bank is also issuing 3:2 right shares worth of Rs. 101 million as per the application submitted in Securities board.

According to Securities board, some companies despite applied for general and right shareissuance have not issued any shares in the market. Companies in merger process and some already issued companies are also seem to be pipeline. Shikhar Insurance who has issued FPO in this week is also in the pipeline for share issue.