Manjushree Finance to Issue Rs 40 Crore in 8.75% Preference Shares via Private Placement
Manjushree Finance Limited has proposed issuing Rs 40 crore worth of 8.75% perpetual non-cumulative preference shares through private placement to institutional investors. The issuance, subject to approval from the company's AGM and Nepal Rastra Bank, will carry no security and pay dividends only in profitable years.
Manjushree Finance Limited has decided to issue 8.75% Perpetual Non-Cumulative Preference Shares worth Rs 40 crore through private placement, subject to regulatory approvals.
The company's Board of Directors has proposed issuing 4 million preference shares at a face value of Rs 100 per share. The proposed shares will carry an 8.75% dividend rate and will be issued exclusively to institutional investors through private placement without any security.
As the shares are non-cumulative, dividends will be distributed only in years when the company earns a profit. Unpaid dividends from a year without profit will not accumulate for payment in subsequent years.
The proposed issuance will require approval from the company's upcoming Annual General Meeting (AGM) as well as Nepal Rastra Bank and other relevant regulatory authorities. The decision was made at the 339th meeting of the company's Board of Directors held on Ashwin 29, 2083.