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Green Development Bank’s IPO from Today

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Green Development Bank’s IPO from Today
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June 5: Green Development Bank is issuing 450,000 units of initial public offering (IPO) from today. Among the 450,000 units of IPO, the bank has allocated 9000 units of shares to its employees and 22,500 units of shares to mutual investment fund. The bank will closed the IPO early in June 8 and latest till July 20.

Interest shareholders can apply for minimum of 50 to maximum of 10,000 units of shares that has been priced Rs 100. Currently, the market share price of development banks is in range of Rs 215 to Rs2680 in the secondary market.

The bank has informed that its paid up capital will reach Rs 100 million after the IPO issuance.  The bank has planned of issuing 400,000 units of right shares in upcoming FY in order to attain the paid-up capital requirement as per NRB directive.

Interest shareholders can apply for the IPO from all the branches of Green Development Bank, NIBL Capital Market, Vibor Capital Ltd, Growmore Merchant Banker, Guheshwori Merchant Banking and Finance, Goodwill Finance, Apex Development Bank, Synergy Finance, Sajha Development Bank and various offices of Tourism Development Bank.

In the current FY, the bank has predicted of earning Rs 5.45 million profits. Similarly, the bank has earned Rs 128,000 net profit while its reserve is at negative balance of Rs 9.36 million till the mid-Jan of current FY.

Likewise, the bank has expected its EPS to reach Rs 5.45 and net worth per share 93.84 times. If the same net worth is maintained till the IPO is listed in NEPSE, then the bank has possibility of getting Rs 94-282 price range for the first transaction in NEPSE. NEPSE provides the first price range for a company’s share based on the company’s net worth per share and 3 times of its net worth.

ICRA Nepal has provided grade 4 plus rating for the issuance. The rating shows below average fundamentals of the company. 

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