Kathmandu. Securities Board of Nepal (SEBON) for the current fiscal year 2082. Although the IPOs of some companies have been approved in 83 months, the approval of rights shares has been stopped for almost six months.
In the last six months, 12 companies have received IPO approval from SEBON. Some FPOs, preferential shares and mutual funds have also been granted permission during the period. However, in the first month of the current fiscal year, 4 companies got permission to issue right shares.
Currently, 14 companies, including one life and three non-life insurance companies, are awaiting authorization in the pipeline. Eight hydropower companies, including Prabhu Mahalaxmi Life Insurance, Sanima GIC Insurance, Prabhu Insurance and United Ajod Insurance, and 1 company each from the investment and production group are awaiting approval for the right shares.
If the right shares are allowed, these companies will raise an additional capital of about Rs 2.22 billion from their shareholders. These companies are applying to Sebon from April 22, 2080 to December 17, 2082 seeking permission to issue right shares.
Niranjan Ghimire, spokesperson of SEBON, said that the delay in the right share approval could be due to some companies submitting insufficient documents. “SEBON has been giving approval to the companies that have met all the criteria to issue ordinary shares,” he said, adding, “It may be due to delay in documentation, failure to submit details as per the criteria or other authorities may have delayed the right approval.” If all the criteria are met, the right share will not be allowed to be granted. ’
