If a company listed on the stock exchange reissues its shares, existing shareholders have first right of refusal to purchase such shares. As such, they are referred to as right shares because they are the existing shareholders’ first right. Existing shareholders have the option to purchase rights shares or not.
At the moment, there are six Nepalese companies waiting in line to issue the correct share to their shareholders. The Securities Board of Nepal has already approved the right issue for some companies (SEBON). Similarly, other businesses are awaiting Sebon’s approval. The companies cannot float the appropriate share without final approval from Sebon.
Hydroelectricity Investment and Development Company (HIDCL) will issue the most right shares of the six companies in the process of issuing them. If Sebon approves, the company will issue 11 crore units worth Rs. 11 Arba. Global IME Capital Limited has been appointed as the issue manager for the appropriate issue.
Upcoming Right Share/Issue In Nepal
|S.N.||Company||Right Share ratio||No. of Units||Right Share Amount||Issue Manager||Date of Application|
|1||Chhyangdi Hydropower Ltd||10:3||893,025.00||89,302,500||Global IME Capital||1/15/2078|
|2||Corporate Development Bank Ltd||1:1.5||3,000,000||300,000,000||Civil Capital Markets Ltd.||9/26/2077|
|3||Excel Development Bank Ltd||10:3||2,433,363.67||243,336,367.42||NIBL Ace Capital Ltd||2/27/2078|
|4||Hydroelectricity Investment and Development Company Ltd.||1:1||110,000,000||11,000,000,000||Global IME Capital Ltd.||2/9/2078 #|
|5||Narayani Development Bank Ltd||1:1||1,312,338||131,233,800||Global IME Capital Ltd.||3/4/2078|
|6||Shikhar Insurance Company Ltd||10:3||5,275,572||527,557,200||NIBL Ace Capital Ltd||2/25/2078|
#SEBON Approval Date