Deprosc Laghubitta Bittiya Sanstha New Job Vacancy : 2080

Last date to apply : 2080-05- 19

Total Number of Vacancy : 50

The country underwent significant change in its economic frontiers after 1992, to be market-oriented and consumption-driven. Thus, the capital market is one of the sectors that came into existence to mobilize savings, allocate capital, determine prices, and foster economic growth & development.  Despite the three decades of capital market history, it is still in the developmental stages. However, many things need to be implemented to make an efficient & strong market. Usually, very young or growing companies go public to issue shares as an initial public offering (IPO) to raise to expand business or pay off debt. Likewise, rights share is another strategy that a company taps into existing shareholders for additional capital in case of tight cash flow or plans to grow & expand its horizon. Similarly, the right offering is a good option for companies that have weak a balance sheet or high leveraged interference to secure additional debt and can turn to the rights issue to meet their short-term obligation. Even though the dilution of outstanding shares is because of the right offering, it will be beneficial to shareholders in the long term to increase the value of the investment. Thus, dilution of outstanding shares spread a company’s net profit over a wider number of shares. Further, it decreases the company’s earnings per share (EPS) and is a major consequence of the right offering. The rights offering is one of the popular financial instruments in that publicly listed companies can capitalize on the opportunity to raise additional funds quickly & efficiently without having to depend on external investors or issue debt or a bank loan. In another way, we can define this as a financial instrument being used to raise additional funds for the public company that allows existing shareholders to buy new shares in proportion to their holding at a discounted price (i.e., NPR 100). Despite this, executing the right offering is not easy or risk-free. Therefore, the right offering is not only the option, but there are sources that the company can use to raise additional funds In the past, as well as in the present time, so many listed companies in NEPSE have issued the right shares to their shareholders, such as, commercial bank’s paid-up capital hike from NPR 2 Arab to NPR 8 Arab approval given by the Central Bank (i.e., NRB). Likewise, the life and non-life insurance industries have given approval to raise their paid-up capital either through en route rights issues or merger & acquisition. On the other hand, microfinance institutions (MFIs) will not be allowed to issue the right share to raise further capital. Such a provision prohibited them in the monetary policy of FY 20/21, but they can strengthen their capital base through either merger or acquisition. However, in other industries, there is no such provision to issue rights. This is a major irony in the Nepal capital market regarding the right issue. How many times does a company issue the right share to its shareholders? Is there any law or specific policy required to issue as many rights as possible? Similarly, sectors such as hydropower are long-term capital-intensive financing projects governed by high debt over equity and have no restriction on issuing the right shares. The monetary policy, explicitly states that hydropower projects can issue rights to pay off their outstanding long-term loans..

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