Narayani Development Bank to Issue 100% Rights Shares from Ashoj 2

Narayani Development Bank Limited (NABBC) has announced that it will open the issuance and sale of 100% rights shares starting from Ashoj 2. Under this plan, the bank will issue rights shares in the ratio of 1:1, meaning one new share for every existing share.

The bank will issue 2,624,676 rights shares at a par value of Rs. 100 each, amounting to a total of Rs. 262,467,600. For this purpose, the bank had already declared a book closure on Bhadra 9. Therefore, only those shareholders who held shares traded until Bhadra 8 are eligible to apply. Applications will remain open until Ashoj 22.

For the rights issue, ICRA Nepal has assigned the bank a rating of ICRA NP Issuer Rating C+, indicating a high risk regarding the bank’s capacity to meet its financial obligations on time.

The issue manager for the rights offering is Global IME Capital Limited. Investors can apply through the issue manager, Global IME Bank’s Bhumi, Nawalparasi branch, Narayani Development Bank’s central office and its various branches, as well as through ASBA member banks and financial institutions. Applications can also be submitted online via the Mero Share platform of CDS and Clearing Limited.

Currently, the bank’s paid-up capital stands at Rs. 262,467,600. After the rights issue, the paid-up capital will double to Rs. 524,935,200.

The bank plans to utilize the collected funds for investments in securities, government bonds, and mutual funds, as well as for infrastructure development and branch expansion.