The company is issuing 10,542.604 units of right shares worth Rs 1.05 billion at a ratio of 1:1 from April 1.
The company closed its book on February 27 for the right issue, thus, the shareholders registered in its book till February 26 will be eligible to apply for the right shares.
ICRA Nepal has assigned BB+ rating to the issuer indicating high risks.
The company has appointed Sanima Capital as issue manager. The interested existing shareholders can apply from the office of issue manager as well as Biratnagar, Birgunj, Pokhara, Rupandehi, Banke, Surkhet, Dhangadhi and Lamjung branch of Sanima Bank. Similarly, they can apply from all ASBA approved BFIs and Meroshare.
Currently, the company has a paid-up capital of jRs 1.05 billion which will reach Rs 2.10 billion after the right issue.
As per the company, it will mobilize the fund received from the right shares to partially repay loans taken from Sanima Bank, Laxmi Sunrise Bank, Agriculture Development Bank, Prime Commercial Bank and Mahalaxmi Bikas Bank.
