NMB Bank FPO Allotment Concludes, Check Your Result Here !

FPO RESULTS:

The allotment of the Further Public Offering (FPO) of NMB Bank has successfully been concluded today afternoon by Citizen Investment Trust, the issue manager. The allotment was just done in the Head Office premises of NMB Bank, Babarmahal, Kathmandu.

The bank had issued 1,14,15,163 unit shares as FPO to the general public at a price of Rs 333 per unit share.

A total of 69,646 applicants had applied for the FPO while 69,626 were deemed to be valid applicants. Applications were received for a maximum of 2,25,200 unit shares.

Check the RESULTS HERE:

Is it Worth Applying for NMB Bank FPO??? How Much to Invest?

FPO Analysis:

In the due course of expanding the paid-up capital, 21st AGM of NMB Bank had endorsed the agenda of capital increment through FPO. Later the Board meeting of the company held on Paush 24, 2073 decided to issue 1,14,15,163 units shares at a premium price. The issuance of shares through FPO would not only increase the capital and collect reserves but also dilute the promoter shareholding to 51%.

NMB Bank had previously issued FPO to its Joint Venture Partner (FMO Netherland) at Rs 250.

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How Lucrative is FPO of NMB Bank? How much to Apply?

FPO:

The FPO issuance of NMB Bank has started from today. The bank is issuing 1,14,15,163 unit shares at a price of Rs 333. The bank has endorsed the public offering to meet its capital requirement of Rs 8 arba. After issuing the Further Public Offering, the share capital of the bank will stand at Rs 7.60 arba. To fulfill the minimum capital requirements of Rs 8 arba, NMB will need to issue only about 6% bonus shares. Along with the fulfillment of capital requirement, the company’s share structure will be converted to 51:49. The current capital structure of the bank is around 60:40.

Just like in previous FPOs, this issue has also gathered much interest from the investors. But in the recent period, the investors have started to become wary as the issue price is very close to the current market price. The recent FPO issuance of Butwal Power Company and Pokhara Finance can be considered as examples.

The main issue creating dilemma among the investors on whether to apply for the FPO is its price of Rs 333, as the current trading price of the stock is Rs 368. There is not much room for capital gain should the market continue its recent downward trend. The calculation of the FPO price based on the SEBON’s guidelines was determined to be Rs 535. The bank had also proposed the FPO at Rs 422 earlier, but after certain market survey, it lowered the price to Rs 333.

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