Right Share Issuance of Gurkhas Finance in the Pipeline

March 9: Gurkhas Finance has requested for an approval from Securities Board of Nepal (SEBON) for the issuance of its right shares. The company submitted an application to SEBON on March 7 requesting approval for 2,893,313 units of right shares in the ratio of 2:1. The issue manager of the right share issuance is NIBL Capital Market. The paid-up capital of the company will rise to Rs 867.9 million after the right share issuance from the current paid-up capital of Rs 578.6 million. The company earned Rs 107 million profit by the second quarter of the current FY. The profit earned is attributed to Rs 131.5 million net interest income and Rs 232.7 million collection of bad debt.

By the end of second quarter of the current FY, the company has Rs 292.1 million in its reserve fund. The company has 2.11 per cent inactive loan and has allocated Rs 146.6 million in provision for possible risk. The earning per share of the company is Rs 36.99 and has liquidity ratio of 30.95 per cent.