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Right Shares worth Rs 8.73 Billion to Float in the Market

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Right Shares worth Rs 8.73 Billion to Float in the Market
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August 12: Twenty-one listed companies in the Nepal Stock Exchange will be issuing Rs 8.73 billion worth of right shares in the current FY 2073/74. The companies including two commercial banks, thirteen development banks, four finance companies, one hydropower company and one insurance company will be issuing 87.3 million right shares to its existing shareholders.

Among the companies, Prime Commercial Bank, Century Commercial Bank and Mount Development Bank have already gained approval from Securities Board of Nepal (SEBON) for the right share issuance. The banks received approval from SEBON on July 17, 18 and 20 respectively.  The banks will be issuing 21.2 million units of right shares worth Rs 2.12 billion.

Prime commercial bank will be issuing 3:1 right shares whereas Century Commercial Bank will be issuing 10:3 right shares. Similarly, Mount Makalu Development Bank will be issuing 1:1.5 right shares to its existing shareholders. The shares are being floated amid a bullish trend in the share market.  The extent of the share market has doubled within one month of period.  Recently, the share market has expanded significantly in terms of transaction amount, trading numbers and numbers of investors.

Moreover, Himalayan Bank, Laxmi Laghubitta Sanstha, Centre Finance, Kamana Development Bank and Seti Finance are in the pipeline for the approval from SEBON in order to issue their right shares. SEBON has informed of forwarding reactions to the institutions after conducting studies.

However, none of the institutions have responded regarding the matter till date according to SEBON.

Meanwhile, SEBON informed of conducting studies on Sahara Development Bank, Api Power Company, Guheshwori Merchant Bank and Finance and Tribeni Development Bank. Furthermore, SEBON has forwarded responses to Lalitpur Finance, Nagbeli Laghubitta Bikas Bank, Arniko Development Bank, Saptakoshi Bikash Bank, Sewa Development Bank, Muktinath Bikash Bank, Miteri Bikash Bank, NMB Microfinance and Siddhartha Bank. SEBON has not carried out any actions to Kanchan Development Bank and Neko Insurance.  The two institutions have submitted their application on August 8 and July 27 respectively. 

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