Once the proposal is endorsed, NT will distribute shares to existing public shareholders in 4:1 ratio.[break]
Officials of the state owned telecom operator said a recently held board meeting approved a proposal that targets to increase the number of ordinary shares to 5.29 million from existing 1.32 million units. NT has allocated 3.5 percent of total shares under public ownership.
“A total of 27,000 shareholders will benefit from the new issue once the MoF endorses the proposal,” said a board member.
The government owns 91.5 percent stake in NT. Similarly, employees and general public hold 5 percent and 3.5 percent stake respectively.
The government had divested its stake in the largest telecom operator in 2004.
NT´s share is being traded at Rs 460 per unit at Nepal Stock Exchange (Nepse), well below the premium selling price of Rs 600 per unit.
Due to sharp decline in share price, public shareholders had been putting pressure on the government to sell NTs´ shares at discounted price.
NT had dropped its initial plan of converting 10 percent of the total shares into public shares after share price plummeted in the market, discouraging investors from putting money in its shares.
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