6 companies to issue Rs. 86 million worth shares

6 different companies are in the process of issuing Rs. 86 million worth shares. After receiving permission from the Security Board of Nepal (SEBON), these companies are getting ready for the issuance. Rs. 81.91 million worth share is the preference share while Rs. 4 million valued share is the general ones. "Among the companies holding the SEBON's consent the preference share of United Finance with Rs. 7.5 million worth and 1:1 share, Royal Merchant Banking & Finance with Rs. 0.14 million worth 1:1 share, International Leasing & Finance with Rs. 50.40 million worth 1:3.5 share, and Annapurna Development Bank with Rs. 15 million worth 1:2.5 share are all set for the issuance" as stated in the press release of SEBON. Likewise, Kaski Finance and Shikhar Bittiya Sanstha are authorized to issue 0.2million general share each at the rate of Rs. 100 per share. According to the prevailing rule the sanctioned companies are to complete their issuance process within 2 months from the permission granted date. "If the companies fail to complete their issuance process within the prescribed time the organizations need to carry out all the issuance procedures over ones again" – says Neeraj Giri, the director of SEBON. For fiscal year 2064/65 Rs. 7.80 billion worth various securities are already issued. Whereas in the fiscal year 2063/64 altogether only Rs. 2.54 billion worth securities were issued. As per the new rule propelled by central head – NRB, all the bank and finance companies required to increase their capital. Preference share issuance is the path paved for meeting that requirement. The shares flooding in the secondary market is also backed by this obligation. Till date out of 37 companies issuing shares, 28 companies have issued preference share, 7 companies have issued general share and 2 companies have forwarded their bond
Source:
Jamb News Service