NTB rights issue

The Nations Trust Bank (NTB) this week said it has decided on a rights issue of 41.9 million shares in which shareholders will be allowed one share for each three shares held, at Rs 25 per share.

The bank also announced an innovative attachment of warrants to the rights, which will entitle all those who exercise their rights to be permitted to warrants, which could be converted to shares at a future date, at a fixed price. A shareholder will be entitled to warrants only to the extent of the subscription to the rights.

Zulfiqar Zavahir, NTB Director/Chief Executive Officer said the proceeds of the rights issue and the future proceeds upon exercising the warrants will ensure that the bank is adequately capitalized to support it’s growth momentum over the next few years.