The Nepal Chamber of Commerce has announced that it will be hosting the Nepal Chamber Expo 2023 from Jestha 4 to 8, 2080 at Bhrikutimandap, Kathmandu. Over 150 stalls featuring a wide range of national and international manufacturers will be present at the event. Exhibits will include items such as automobiles, electrical and electronics, home appliances, fashion wear and accessories, garments and textiles, mobile and gadgets, fast-moving consumer goods, hydro, logistics, handicrafts and handlooms, shoes and leather items, cosmetics, and food and dairy products. These details were disclosed in a media statement.
Day: May 7, 2023
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Nepalese Stock Exchange (NEPSE) index experiences decline in trading with all sector indices closing red
The Nepalese Stock Exchange (NEPSE) experienced a decline today, with the index closing at 1,850.61, a decrease of 1.02% or 19.12 points from the previous trading day’s closing. The index had gained 12.73 points yesterday but suffered a loss today. The trading day opened at 1,870.41, and the intraday high was 1,872.22, while the intraday low was 1,848.80, closing at 1,850.61.
During today’s trading, a total of 263 scrips were traded via 23,051 transactions, with 2,015,959 shares exchanged for a turnover of Rs. 60.81 crores. This was lower than the previous day’s turnover of Rs. 73.26 crores. Shivam Cements Ltd (SHIVM) had the most shares traded and the highest turnover of Rs. 3.22 crores, with a market price of Rs. 400 per share. Aatmanirbhar Laghubitta Bittiya Sanstha Limited (ANLB) had the highest gain of 8.22% for the day, while NMB Debenture 8.50% – 2087/88 (NMBD87/88) suffered the highest loss of 8.83% for the day.
All sector indices experienced a decline, with “Hydropower” experiencing the highest loss of 2.04%, while “Mutual Fund” had the least decline of 0.05%. Overall, the NEPSE index had a relatively tough trading day, with a decline in the index and the majority of the sector indices experiencing losses.
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Modi Energy Limited’s IPO oversubscribed by 2.14 times; Issue to close today
Modi Energy Limited is wrapping up its IPO issuance of 55,59,420 unit shares worth Rs. 100 each to the general public from today i.e. May 7, 2023. The issue was opened on May 1, 2023. However, the IPO issue is already oversubscribed by 2.14 times so far as 1,062,761 applicants have applied for a total of 11,915,310 units.
The company had issued 29,00,000 unit shares worth Rs. 29 crores to the project-affected locals of Parbat District out of which only 804,390 units or 27.73% were allotted to valid applicants. Thus, the remaining 20,95,610 units of unsubscribed shares of project-affected locals are added to 43,50,000 units reserved for the general public to make a total of 64,45,610 units for the general public.
Sunrise Capital Limited is appointed as the issue manager for the IPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 100,000 units. The IPO shares are for the Hydroelectric Project (HEP) of the 20 MW run-of-river, Tallo Modi Khola Hydropower Project (TMKHP) constructed under the “BOOT” (Build, Own, Operate, and Transfer) model in the Parbat district of Nepal. It came into operation on September 30, 2021.
The company has been promoted by institutional promoters and individual businessmen with long experience in various sectors for setting up the hydroelectric project. Overall, 75% of shares are of the promoter shareholders in the company. CARE Ratings Nepal Limited (CRNL) has revised the Issuer Rating of Modi Energy Limited to “CARE-NP D (Is)” from “CARENP BB+ (Is)”. Issuers with this rating are considered to be in default or are expected to be in default soon.
The IPO shares have already attracted significant interest from the public, and it remains to be seen how the company performs in the coming years.
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NEPSE index gains 0.69% with all sector indices closing green
The Nepal Stock Exchange (NEPSE) index gained 12.73 points today, closing at 1,869.73, which is a 0.69% increase from the last trading day. The index had a low of 1,846.67 and a high of 1,875.26 during the day, opening at 1,856.97. The trading volume was 276 scrips traded via 20,655 transactions, with a total of 2,533,714 shares exchanged, amounting to Rs. 73.26 Crores in turnover, higher than the previous day’s turnover of Rs. 62.02 Crores.
NABIL Bank Limited Promotor Share (NABILP) was the most traded stock and had the highest turnover of Rs. 4.5 crores, closing at a market price of Rs. 474 per share. NIBL Growth Fund (NIBLGF) gained the highest 9.86% for the day, while NMB Debenture 8.50% – 2087/88 (NMBD87/88) lost the highest 5.85%.
All sector indices closed in the green, with “Non-Life Insurance” gaining the highest 1.55%, and “Investment” gaining the least 0.32% today.
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Nepal Investment Mega Bank to issue Rs 4 arba worth Debenture with 10% interest rate
Nepal Investment Mega Bank has decided to issue debentures worth Rs. 4 arba, and they have chosen Prabhu Capital as the issue manager for this process. The debentures will be offered to the general public as well as institutional investors. The duration of the debenture is for ten years and it will provide a 10% interest rate annually.
The bank’s Senior Deputy CEO, Mr. Mahesh Sharma Dhakal, and CEO of Prabhu Capital, Mr. Asish Gauchan, signed the Memorandum of Understanding (MoU) at a program held for this purpose. The appointment of Prabhu Capital as the issue manager and the signing of the MoU have been communicated to the public via a media statement.
By offering debentures to the public, Nepal Investment Mega Bank is essentially offering a fixed interest rate investment option to the investors for the next ten years. The interest rate of 10% is expected to provide an attractive return to the investors, while also helping the bank raise funds for its operations and future investments.
Prabhu Capital, as the issue manager, will be responsible for overseeing the entire debenture issuance process, including the marketing and distribution of the debentures to potential investors. As a merchant bank, Prabhu Capital has experience in managing and underwriting various types of securities, and its involvement is expected to ensure a smooth and successful debenture issuance process.
Overall, the appointment of Prabhu Capital as the issue manager for Nepal Investment Mega Bank’s debenture issuance is a positive development for both the bank and potential investors. It provides investors with an attractive investment option, while also enabling the bank to raise funds for its operations and growth.
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Rawa Energy Development Limited closes IPO for project-affected locals in Nepal
Rawa Energy Development Limited is a public limited company that was initially incorporated as a private limited company on August 16, 2009. It was later converted into a public limited company on June 28, 2019. The company is engaged in setting up Hydroelectric Projects (HEP) in Nepal, and it is promoted by business persons who have long experience in the hydropower and other sectors.
The company has a 3 MW Upper Rawa Khola Small Hydropower Project (URKHP) located in Khotang District. The project has been in commercial operation since September 20, 2020, and it was constructed under the BOOT (Build, Own, Operate, and Transfer) mechanism. The project has been providing power to the national grid and has been contributing to the development of the region.
Rawa Energy Development Limited is closing the issue of its IPO for project-affected locals today, which was opened on 23rd Chaitra, 2079. The issued capital of the company is Rs. 28 Crores, out of which 10% i.e. 2,80,000 unit shares worth Rs. 2.8 crores have been allocated to project-affected locals of Khotang District. The remaining 20% of the company’s issued capital, i.e., 560,000 unit shares, will be issued later for the general public. Of this public issue, 10% of the shares totaling 56,000 units shares were allocated for Nepalese citizens working abroad, the issue of which closed on 7th Baisakh, 2080.
The minimum application quantity for project-affected locals is 10 units, while the maximum quantity is 10,000 units. Prabhu Capital Limited has been appointed as the issue manager for the IPO, and the promoter-public share ratio will be 70:30 after this IPO.
CARE Ratings Nepal Limited (CRNL) has assigned an issuer rating of ‘CARE-NP BB (Is)’ to Rawa Energy Development Limited. This rating suggests that issuers with this rating have a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
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IPO Offered by Upper Syange Hydropower Limited to Locals and Nepalese Citizens Abroad
Upper Syange Hydropower Limited is offering shares to project-affected locals of the Lamjung District and Nepalese citizens working abroad. The IPO will be open from 1st Jestha to 16th Jestha, 2080, and if the issue is not subscribed by the early closing date for locals of Lamjung District, it can be extended till the 30th Jestha. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad. The company’s issued capital is Rs. 22 Crores, and 10% i.e. 2,20,000 unit shares worth Rs. 2.2 crores have been allocated to project-affected locals of Lamjung District.
29.55% of the company’s issued capital i.e. 650,000 unit shares will be issued later for the general public. Of this public issue, 10% of the shares totaling 65,000 units shares have been allocated for Nepalese citizens working abroad. The minimum application quantity for the project-affected locals is 10 units, while the maximum quantity is 100,000 units. Meanwhile, for Nepalese citizens working abroad, the minimum application quantity is 10 units, while the maximum quantity is 50,000 units.
Siddhartha Capital Limited is the issue manager, and the promoter-public share ratio will be 60.45: 39.55 after this IPO. The issuer rating of Upper Syange Hydropower Limited has been reaffirmed as ‘CARE-NP BB (Is)’ by CARE Ratings Nepal Limited (CRNL), indicating a moderate risk of default regarding the timely servicing of financial obligations in Nepal.
Upper Syange Hydropower is a Public Limited company that is setting up a 2.4 MW Run-of-River (RoR), Upper Syange Hydropower Project (USHP) in BOOT (Build, own, Operate, and Transfer) mechanism. It was incorporated on January 26, 2009, as Upper Syange Hydropower Private Limited and converted to Public limited on March 30, 2017. The project is located in the Lamjung district of Nepal and is promoted by both individual and institutional promoters from different backgrounds.