NDB outlines Rs. 6.2 b Rights Issue’s way forward

Monday, 8 October 2018 00:00 - - {{hitsCtrl.values.hits}}

NDB on 5 October outlined the way forward on its Rs. 6.2 billion worth Rights Issue, including allotment and seeking subscriptions from strategic investors or institutional funds.

The Issue of one for three (total of 59.154 million shares) at Rs. 105 per share closed on 4 October.

NDB said it was currently processing the applications received and will allot shares on all valid applications for entitlements as well as additional shares. The Board has further decided that it will explore options for seeking subscriptions from suitable strategic investors and/or institutional funds for all Rights that remain unsubscribed after the full allotment at the same price. “Since some existing shareholders will not presently be entitled to allotment of their full Rights under the single shareholding restrictions under the Banking Act as a result of the under-subscription of the Rights Issue, the Board of NDB has decided to seek their individual consent to stay the allotment of the number of Rights shares that will exceed their under the law pending the above actions,” NDB said.

The purpose of the Rights Issue is to further strengthen the equity base of the bank and improve the capital adequacy as well as part finance the growth in the loan portfolio of the bank.