Cosmos Dev Bank IPO from December 8; 1.75 lakh units floated

Nepalstocks

Nov 29, 2013

Cosmos Development Bank Limited has  announced to float the Initial Public Offer (IPO) of 1.75 lakh unit equity shares of face value Rs 100 from December 8.

The development bank has appointed Civil Capital Market Limited as its issue managers.

Altogether 3,500 units have been set aside for the bank’s staff and the rest to the general public.

The IPO's earliest closing date is on December 12 or could be extended till December 22. The applicants must apply for at least 50 units and up to 10,000 units.

According to the fourth quarterly report of the development bank based in Gorkha, it had registered a net profit of Rs 2.39 in the first quarter of the current fiscal year compared to 152,640 in the corresponding quarter.

Its paid-up capital stands at Rs 2.62 crore and it has a negative reserve of Rs 46.86 lakh as its total loan loss provision to total NPL is as high as 158.93 percent.

Nonetheless, its NPL stands at 0.74 percent.

After the issuance of the IPO, the development bank’s paid-up capital will rise to Rs 4.37 crore.

Coming soon: ADBL shares worth Rs 960m

Agricultural Development Bank Limited (ADBL) will start issuing ordinary shares worth Rs. 960 million within the next two weeks as the Securities Board of Nepal (SEBON) is expected to grant its approval by Thursday.
It will be the largest ever initial public offering (IPO) in the country. The existing rule regarding issuance of securities has provisioned that a company should make its IPO within two months after receiving permission. Ace Development Bank is its issue manager. Ace chief executive officer Siddhant Raj Pandey said that he also got information about SEBON giving permission to ADBL to issue shares.
"We will inform the public about the procedure of share issuance within a week," he said. Issuance of ADBL public shares was delayed due to various procedural and legal complications. "Lately, we were delayed in giving permission as ADBL just submitted the unaudited financial report," said a SEBON source. "Now, we have got the audited report."
Earlier, the IPO was stalled as there was no merchant banker company able to underwrite ADBL's huge share issue. The underwriter should underwrite 50 percent of the shares. It means the underwriter should purchase undersubscribed shares. Nepal Rastra Bank later simplified the provision regarding underwriting by allowing Ace to underwrite the ADBL's shares. The ADBL is set to issue 30 percent of the total number of shares. The government's stake in the ADBL will remain at 55.86 percent after issuance of the shares. About two years ago, ADBL had issued 14.14 percent of the shares to its customers. SEBON had stopped listing of these shares on the stock exchange as they were not issued through the IPO process.
When the stock market has been heading downhill, ADBL is making the largest ever share issue. A stock analyst said that all the shares may not be sold due to the liquidity crisis in the banking system. But he said it may help bring excess liquidity in the market to the banking system. "The share subscription of City Development Bank was 27 times higher recently," Pandey said.

Special Notice for Transfering Stocks Holders' Name (शेयर नामसारी सम्बन्धी अत्यन्त जरुरी सूचना)

शेयर नामसारी सम्बन्धी नेपाल स्टक एक्सचेञ्ज लि. -नेप्से को अत्यन्त जरुरी सूचना

यस नेप्सेबाट धितोपत्र दाखिल खारेज गर्न सम्बन्धित कम्पनीमा पठाइएको नामासारी पत्र प्राप्त भएको १५ दिनभित्र दाखिल खारेज गर्नुपर्ने प्रावधान भएतापनि कतिपय कम्पनीले सो अनुसार नामसारी नगरी महिनौं लगाएको हुँदा यसबाट कारोबार सहज नभएको एवं लगानीकर्ता मर्कामा परेको भन्ने र्सवसाधारण लगानीकताहरु तथा शेयर दलाल व्यवसायीहरु समेतबाट गुनासो आएकोले यस नेप्सेले देहाय अनुसार गर्ने निर्ण्र्ााभएको हुँदा सोही अनुसार गर्न/गराउन हुन सम्बन्धित सवैलाई सूचित गरिन्छ ।
ड्ड शेयर नाामसारीका लागि निवेदन प्राप्त गरेको १५ दिनभित्र नामसारी गरी नपठाउने साथै धितोपत्र कारोवार हुनु अघि दाखिला खारेज निवेदनमा दस्तखत प्रमाणित गर्दा आवश्यक सावधानी नअपनाई केही उल्लेख नगरिएको खाली फारममा दस्तखत प्रमाणित गर्ने र बिक्रीकर्ताको तीन पुस्ते नभिर्डाई दस्तखत प्रमाणित गर्ने कम्पनीको शेयर कारोबार स्थगीत गरी कार्वाही गर्ने ।
ड्ड नामसारीको कागजपत्र आफ्नो कार्यालयमा थन्काएर राख्ने स्टक एक्सचेञ्जबाट कागजात नबुझी लगानीकर्ताहरु लाई कागजपत्र नदिने र समयमा नामसारीका लागि स्टक एक्सचेञ्जमार्फ सम्बन्धित कम्पनीमा नपठाउने शेयर दलाल व्यवसायीहरुलाई निलम्बन गरी कार्वाही गर्ने ।ड्ड नामसारी कार्यलाई अद्यावधिक गर्न नसकेका कम्पनीलाई सो कार्य गर्नका लागि कात्तिक मसान्त सम्मको समय उपलब्ध गर्राई २०६५ मंसिर १ देखि उपर्युक्त व्यवस्था लागु गर्ने ।


नेपाल स्टक एक्सचेञ्ज
लिमिटेडकारोबार राफसाफ तथा फछ्र्योट
शाखासिंहदरबारप्लाजा, काठमाडौं
फोनः ४२५०७३४, ४२५०७५५
फ्््याक्सः ४२६२५३८

Remittances soar 74 percent, exports rebound: NRB

Nepal has witnessed a strong growth in remittance inflow and exports -- two critical sectors of the economy -- in the first two months of the current fiscal year, says a report of Nepal Rastra Bank (NRB).During the period, the country received Rs. 31.88 billion in remittances from Nepalis working abroad. The figure is a whopping 74 percent rise over the receipts for the same period last year. The gain has been attributed to an increase in the number of Nepalis leaving for overseas jobs and also to depreciation of the Nepali rupee vis-à-vis the US dollar. During the two months, the number of Nepali foreign workers grew by 17.75 percent and the Nepali currency lost value by 6.48 percent.

Likewise, the country's total exports bounced back by more than one-third and touched Rs. 13.46 billion in the first two months of 2008/09, compared to a decline of 3 percent in the same period last year. Of the total exports, sales to India -- Nepal's largest market - went up by over 12 percent to reach Rs. 7.28 billion. Exports to other countries also soared by 82 percent and amounted to Rs. 6.17 billion. The NRB report released on Friday has credited the rise to an upsurge in exports of readymade garments, copper wire, tooth paste and zinc sheets to India and increased sales of Nepali pulses, woollen carpets, herbs and pashmina in other countries. Propelled by strong consumption on the back of greater remittances, Nepal's total imports also rose by 43.3 percent during the period and touched Rs. 48.22 billion. "Imports from India grew by over 34 percent to Rs. 26.85 billion and from other countries by 56.5 percent to Rs. 21.37 billion," says the report. With imports growing faster than exports, the country's trade deficit swelled by over 46 percent to reach Rs. 34.76 billion.

The report portrays a gloomy picture for consumers, as consumer inflation rose to 13.5 percent in mid-September 2008 compared to mid-September 2007. Prices of food items and beverages increased by 14.2 percent while non-food items and services went up by 12.8 percent during the period. "A sharp rise in prices were recorded in the case of sugar, oil, ghee, grains, rice, pulses, restaurant meals, milk and milk products, meat, fish and eggs and spices," says the report. The cost of transportation and communication and housing goods and services rose by 23.1 percent and 18.1 percent respectively in mid-September 2008 compared to a year ago.

1st Quarter Results Published

Banks and Financial institutions are publishing 1st quarter results which shows better performance than previous year same quarter. Many finances such as ICFC, ABBL and BDBL have increased its capital by issuing right shares in the last fiscal year lets see if the performance of these companies are also better according to their paid up capital. For financial datas click here.

Commercial Banks to issue Bonds and Debentures.

Laxmi Bank is issuing 7 years redeemable debenture at 8.5% interest rate from 12th October, 2008 (2065 Ashwin, 26). The total number of debentures will be 3,50,000 of Rs 1000 each. Read more

Similarly, Siddhartha Bank is issuing 7 years redeemable bond at 8% interest rate from 5th October, 2008 (2065 Ashwin, 19). The total bonds issued to public will be 800,000 of Rs 1000 each. Read more

Remittance flow climbs up 43pc to Rs 143b

Nepal saw a huge 42.5 percent rise in workers' remittances in 2007/08, as more Nepalis went overseas to work amid shrinking employment opportunities at home.
According to Nepal Rastra Bank's (NRB) annual report, the country's migrant workforce sent back Rs 142.7 billion during the last fiscal year. As swelling remittances boosted consumption, Nepal's imports grew 16.1 percent in 2007/08, overtaking the figure for the previous year.
"In total, Nepal's imports grew by more than Rs 30 billion and touched Rs 226 billion in the last fiscal year," says the NRB report released Friday. Of the total imports, purchases from India expanded by 24.7 percent, while imports from other countries rose by 3.5 percent.

The country's exports, however, continued to flounder as a result of internal and external problems. Consequently, total exports inched up a mere 2.4 percent to Rs 60.78 billion.

Moreover, exports to India declined by 7.4 percent in 2007/08. Exports to other countries increased by 25.5 percent. Higher imports and slowed exports widened the country's trade deficit to Rs 165 billion. The trade deficit with India alone amounted to Rs 105.9 billion.

A downturn in sales and restrictions imposed by India resulted in the production of vegetable ghee and oil, plastic products, garments and domestic metal products falling during the year. "That dragged down the country's manufacturing production index by 1.4 percent in 2007/08, compared to a growth of 2.6 percent in the previous year," says the report. The report added that prices of consumable goods and services soared 12.1 percent in mid-July 2008 compared to mid-July 2007. The average annual consumer inflation remained at 7.7 percent.

Among major products, oil and ghee prices went up by 21 percent, grain and cereal by about 15 percent and pulses by 14 percent. The prices of rice and rice products rose by 14 percent. The annual average prices of non-food items and services increased by 5.1 percent in 2007/08. With the improved law and order situation in the country, Nepal received Rs 9.8 billion worth of foreign direct investment commitments in 2007/08. Increased remittances also expanded the gross foreign exchange reserves to Rs 212.6 billion in mid-July 2008. Between mid-July 2007 and 2008, the Nepali currency depreciated by 5.33 percent vis-à-vis the US dollar. A year before, it had appreciated by 14.26 percent, according to the report.

Moreover, in 2007/08, NRB purchased Indian currency worth Rs 70.6 billion by selling US$ 1.37 billion, as the Indian rupee ran short in the market due to a widening current account deficit with India and the higher amount of payments made to the Indian Oil Corporation.

More IPOs on the line

Sagarmatha Merchant Banking and Finance is issuing its IPO from 6th July 2008 to 10th July 2008(22nd Asadh to 26th Asadh, 2065). Its issue manager is Nagarik Lagani Kosh.

Reliable Investment Bittiya Sasthan is issuing initial shares to public from 7th July 2008 to 11th July 2008 (Asadh 23 to Asadh 27, 2065). It has a current paid of capital of Rs 5,77,50,000 which is paid by the promoters of the intitution and is floating shares of Rs 2,47,50,000 to general public to make the total paid up of Rs 8,19,00,000. Its issue manager is NIDC Capital Market and NMB.

Similarly, Global Bank is issuing IPO from 9th July 2008 to 14th July 2008 (Asadh 25 to Asadh 30, 2065). Its paid up capital will be Rs 100 Crore. The promoters have paid 70% and 30% is to be floated for public. Its issue manager is NIDC Capital Market.
More IPOs are coming in few weeks which is making the secondary market lose few points because of people's attraction towards new issues.

CHCL to issue its share at Rs.600

Chilime Hydro Power Company ltd. has decided to issue its share at Rs.600 per share. The board meeting held on 22nd march, 2008 decided to add a premium of Rs.500 on the share with the paid up value of Rs.100 and issue at the rate of Rs.600 per share. Under the company act - the organization operating in profit for last 3 years, agreed upon issuing share in premium in the general meeting of the company and having net worth more than the paid up value has the authority to issue the share at premium. Referring to the same act, Chilime is about to issue the share to the general public at premium. The company was to issue the share to the general public before three years, yet not a single share is smelt to date. The company is issuing 23.4 million shares for the general public, but it is further partitioned. Out of which 1.8 million shares is offered to the local people of Rasuwa, where the chilime hydro power plant is operating, 500 shares to the local Parwatikunda secondary school, 11 thousand 5 hundred and 20 shares to the mutual fund and 10 thousand is kept in store. The remaining 21.19 million shares are to be distributed to the general public as an Initial Public offering (IPO), issue managers being NIDC capital market and Citizen Investment Trust (CIT).CHCL has decided to sell the shares to the secondary school at Rs.100 itself. It is still to be decided at what price the local rasuwalis are receiving the shares.

Sebon uncovers scam

Investors have been, for long, complaining of foul play in the capital market. But for the first time, Securities Board of Nepal (Sebon) has uncovered what appears to be a huge financial scam in the capital market that might be only the tip of an iceburg. "Sebon has stopped the allotment process of Employment Promotion and Development Bank's (EPDB) shares until its investigation completes. It has also written to Ace Development Bank, the issue manager of EPDB's Initial Public Offerings (IPOs), to stop the process of allotment," said Dr Chiranjivi Nepal, chairman of Sebon, the regulatory authority of the capital market. "After we got complaints of foul play in IPOs, we randomly checked the collection centres," he informed, adding that the inspection team then took control of the suspected forms. "Sebon inspection team has randomly taken control of a couple hundreds of forms that are being suspected of fraudulent," said P N Poudyal, director, Market Regulation Department of the Sebon. "Such forms will be cancelled which is necessary to clean up the market," said Neeraj Giri, director at the Sebon, without elaborating on what action the regulatory authority is going to take. The EPDB had received 5,00,000 applications amounting to over eight billion rupees that it claimed to be oversubscribed by 66 per cent. It had floated shares worth Rs 128 million for public. Such incidents call for an urgency of new IPO regulation that is in offing and is expected to control such foul play.

This shows how irresponsible and careless our government is. What is the right action for the government? Just eliminate those applications or keep those applications to get the information of knowing who is doing it and taking some legal actions?

Markets crash: Selling in haste may bring heavy losses

It began with a small fall. Then there was a recovery. Experts called it volatile times. But soon the Stock Market came crashing down, day after day. Not just in Nepal but its happening world wide. Many lost all their savings. For others, it is a difficult time to make decisions. Should they sell, buy or simply hold? For investors who had a jolly ride over the past few years, it was a rude shock. It was a turbulent and unhappy ending that many investors find hard to digest. What should you do in a crashing market?

Here are a few tips:

Do not panic
Ups and downs are a part of stock markets. What goes up must come down and what comes down must go up. This explains the market behavior. It may take a few days, or weeks, or even months. But the wheel will rotate. An index cannot rise up indefinitely. So, a fall is a natural market phenomenon. The economy is strong. There is every possibility that markets will recover and bounce back to even stronger levels.

Wait and stay calm
This is the golden rule for turbulent and unpleasant times. Some people indulge in selling their shares in utter haste. Nobody can predict the markets. So why burn your fingers? Stock markets must be viewed as long-term investment vehicles. So do not sell in haste. Things will improve. It will take time and no one can predict it. Have an investment horizon of five to 10 years. Hold your stocks till then, unless there are enough indicators that the company is expected to fare badly. Stocks are good long-term investment instruments but can turn risky or even dangerous in the short term. Hence, simply hold. If you have a well-diversified portfolio, there is little need for you to worry. Even if the fall is owing to a particular sector, the other sectors will pull your returns up. To accurately time the market is impossible. Even the experts fail many times. Nobody can predict how the market mood will change the next minute. Hence, have a long-term investment horizon. For those who have to sell, exercise caution. Bad markets expose weak companies that struggle to make a regular profit. If you do not have faith in a company, selling can be your only option. Research the company before making the final sell decision. It can so happen that you sell at a loss and have to reinvest elsewhere at a high price.