Once upon a time in distant past, around 2008/9, Mr. Kamal Gyawali was a hero. He was busy upgrading KMBF to Kist Bank. He was boasting that he will increase the paid up capital of his proposed bank to 5 billion. I was also impressed and bought KMBF shares. He offered rights shares many times. I collected quite a good number of shares. My average was around 550. I was dreaming a high dream. Kist got approval from NRB. I got Kist shares. I was happy. Gradually, Kist shares begun downward journey even before the avalanche that brought market down from 1175 to 290. I could not sense the avalanche but sensed the future of Kist shares and sold in much loss. But I was bit lucky selling it above 400.
Now, there is another Kamal Gyawali in the market. Its name is NRB. If it encourages meeting 8 Arab paid up capital by issuing rights shares, we will have many Kists in near future. Increasing capital without a plan for sustained growth is simply poisoning a BFI. Hence, I request NRB to discourage rights shares, allow bonus shares and encourage merger. Also, I advise investor friends to go for companies with a sustainable growth prospects.
For, traders, it is trend that makes sense for them and may not need to be overly calculative in regard to issues such as rights shares.
This is my perspective and we might have deference. I welcome and also respect differing views.
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