Month: May 2023

  • NEPSE Index Surges by 2.71% on Falling Interest Rates and Increased Turnover

    NEPSE Index Surges by 2.71% on Falling Interest Rates and Increased Turnover


    Today, the NEPSE index concluded at 1,942.63, marking a gain of 51.31 points from the previous trading day, representing a 2.71% increase. Yesterday, the index had gained 8.10 points. The trading day began at 1,891.37, which also served as the intraday low. However, the index reached a high of 1,942.64 before ultimately closing at 1,942.63.

    A total of 271 scrips were traded through 38,796 transactions, with 6,067,432 shares changing hands, amounting to a turnover of Rs. 2.2 Arba. This turnover surpasses the previous trading day’s turnover of Rs. 1.278 Arba and marks the highest turnover in three months since February 26, 2023, when the turnover stood at Rs. 2.52 Arba.

    The NEPSE index witnessed significant gains due to decreasing interest rates and a reduction in the CD ratio, which stands at 84.74, the lowest level this year. These factors contribute to increased investor confidence in the bearish market, potentially attracting new investors and additional brokers to foster market growth. Notably, the recent approval of licenses for seven new brokerage houses aligns well with this context and can be seen as beneficial for the market.

    Shivam Cements Limited (SHIVM) recorded the highest turnover of Rs. 10.05 crores, closing at a market price of Rs. 436.50 per share. HIDCLP shares were the most actively traded during the session.

    Four scrips experienced positive circuit limits for the day, indicating substantial upward movements. Conversely, Sunrise First Mutual Fund (SFMF) registered the highest decline of 2.00%.

    All sector indices closed in the green, with the “Manufacturing And Processing” sector gaining the highest at 4.05%, while the “Mutual Fund” sector recorded the least gain of 0.55% for the day.

  • Kumari Bank Limited Initiates Auction of Promoter Shares to General Public

    Kumari Bank Limited Initiates Auction of Promoter Shares to General Public


    Kumari Bank Limited (KBL) is conducting an auction for the sale of 316,140 units of promoter shares to the general public. The auction, which began on 8th Jestha and will continue until 10th Ashad, 2080, allows individual investors, companies, and institutions to participate. The minimum bid rate for the auction is set at Rs. 110, and the minimum bid quantity for promoter shares is 1000 units.

    While bidders have the option to bid for the entire quantity of shares, they must comply with the Nepal Rastra Bank’s regulations, which limit the maximum number of shares that can be held by a single entity. The auction is managed by B.O.K Capital Markets Limited, and the latest trading price (LTP) for KBL stands at Rs. 165.50 as of the time of writing.

  • Himalayan Power Partner Limited Reports Net Loss of Rs. 10.43 Crores in Q3 FY 2079/80

    Himalayan Power Partner Limited Reports Net Loss of Rs. 10.43 Crores in Q3 FY 2079/80


    Himalayan Power Partner Limited (HPPL) has released its third-quarter report for the ongoing fiscal year, revealing a Net Loss of Rs. 10.43 crores. In contrast, during the same quarter of the previous fiscal year, the company had recorded earnings of Rs. 1.70 crores.

    HPPL reported a revenue of Rs. 26.33 crores from the sale of electricity up to the third quarter of FY 2079/80. However, the company incurred costs of Rs. 1.81 crores for sales, Rs. 34.10 lakhs for administrative expenses, and Rs. 54.16 lakhs for employee costs.

    One significant factor impacting the company’s profitability is the financial cost, which amounted to a loss of Rs. 24.86 crores during the first three quarters of the current fiscal year.

    HPPL has a paid-up capital of Rs. 1.06 Arba and has retained earnings of Rs. 11.47 crores. The Earnings per Share (EPS) ratio stands at a negative Rs. – 9.79, while the Net Worth per Share is Rs. 110.77.

    At the end of the third quarter of FY 79/80, the closing price of HPPL’s shares was Rs. 297.

    The completion of the Dordi Khola Hydroelectricity project in Lamjung, with a capacity of 27 MW, has contributed to an increase of 1.53% in current assets and a significant rise of 181.33% in current liabilities compared to the corresponding quarter of the previous fiscal year.

    According to the company’s management analysis, following the successful completion of the project, HPPL is exploring potential investments in other projects to further expand its operations.

  • Nepal’s Trade Deficit Stands at Rs. 12.04 Kharba for First Ten Months of Fiscal Year

    Nepal’s Trade Deficit Stands at Rs. 12.04 Kharba for First Ten Months of Fiscal Year


    Nepal’s trade deficit for the first ten months of the current fiscal year has remained at Rs. 12.04 Kharba, according to the recently released Nepal Trade Statistics by the Department of Customs. This represents a decrease of 15.85% compared to the trade gap of Rs. 14.31 Kharba during the same period in the previous fiscal year. Both imports and exports have also witnessed a decline of 16.78% and 24.49% respectively when compared to the corresponding period of FY 2078/79.

    During the first ten months of FY 2079/80, Nepal’s imports amounted to Rs. 13.35 Kharba, with petroleum products being the top imported commodity, followed by crude soya bean oil and crude palm oil. On the other hand, the country’s exports reached Rs. 1.3 Kharba, experiencing a significant drop compared to the previous year’s figures.

    It is noteworthy that Nepal’s trade deficit has narrowed in the review period, indicating some improvement in the overall trade balance. However, the decline in both import and export values suggests challenges in the external trade sector, which require attention and strategic measures to promote trade growth.

    Please note that the provided data is based on the first ten months (Shrawan-Baishakh) of FY 2079/80, which corresponds to the period from mid-July 2022 to mid-May 2023.

  • Rawa Energy Development Limited Announces Initial Public Offering (IPO) for General Public

    Rawa Energy Development Limited Announces Initial Public Offering (IPO) for General Public


    Rawa Energy Development Limited has recently announced its plan to issue an Initial Public Offering (IPO) to the general public. The company aims to issue 6,43,667 unit shares with a face value of Rs 100, starting from 18th Jestha, 2080. The goal of this IPO is to raise Rs 6.43 crore. The closing date for the IPO is initially set for 22nd Jestha, with the possibility of extension until 32nd Jestha, 2080 if the issue is not fully subscribed.

    Previously, the company had issued 2,80,000 unit shares worth Rs. 2.8 crores to project-affected locals in Khotang District. However, only 31.2% of these shares were allotted to valid applicants, leaving 192,330 unsubscribed shares. These unsubscribed shares, along with 560,000 units (20% of the issued capital reserved for the general public), make a total of 752,330 units available for the general public to apply for.

    Out of the total 752,330 units, 56,000 units have already been issued and allotted to Nepalese citizens working abroad, while 37,616 units have been set aside for mutual funds, and 15,047 units have been reserved for employees of the company. The remaining 643,667 units are open for application by the general public.

    The majority of shares, 70% to be precise, are held by the promoter shareholders of Rawa Energy Development Limited. Prabhu Capital Limited has been appointed as the issue manager for the IPO issuance, and interested investors can apply for a minimum of 10 units and a maximum of 10,000 units.

    CARE Ratings Nepal Limited (CRNL) has assigned an issuer rating of ‘CARE-NP BB (Is)’ to Rawa Energy Development Limited, indicating a moderate risk of default regarding the timely servicing of financial obligations in Nepal.

    Rawa Energy Development Ltd is a public limited company that was originally incorporated as a private limited company on August 16, 2009, and later converted to a public limited company on June 28, 2019. The company is promoted by individuals with extensive experience in the hydropower sector and aims to establish hydroelectric projects in Nepal. Their existing project, the 3 MW Upper Rawa Khola Small Hydropower Project (URKHP) located in Khotang District, has been in commercial operation since September 20, 2020. The project was developed under the BOOT (Build, Own, Operate, and Transfer) mechanism.

  • Gold Prices Skyrocket by Rs. 800 in Domestic Market

    Gold Prices Skyrocket by Rs. 800 in Domestic Market


    The price of gold has experienced a significant increase of Rs. 800 in the domestic market today. As reported by the Federation of Nepal Gold and Silver Dealers’ Association, the current trading rate for fine gold stands at Rs. 110,000 per tola, compared to yesterday’s rate of Rs. 109,200 per tola. Similarly, Tejabi gold is being traded at Rs. 109,500 today, whereas it was priced at Rs. 108,700 per tola yesterday.

    In addition, silver has also seen a price surge of Rs. 15 per tola. The current trading rate for silver in the local market is Rs. 1,385 per tola, up from yesterday’s closing rate of Rs. 1,370 per tola.

    In the international market, the price of gold is currently at USD $1,977.60 per ounce, while silver is being traded at $23.83 per ounce.

  • LBBL Announces 11% Debenture Issuance for Public and Institutions

    LBBL Announces 11% Debenture Issuance for Public and Institutions


    Lumbini Bikas Bank Limited (LBBL) has announced its plan to issue 10,00,000 units of “11% LBBL Debenture 2089” to the general public and institutions. The debenture has a maturity period of 10 years and offers an 11% coupon rate. The application period for the debenture will be open from 16th Jestha to 19th Jestha, 2080, with a possible extension to Jestha 30, 2080, if the issue is not fully subscribed.

    The debenture will be issued at a par value of Rs. 1000 per unit, totaling 10 lakh units. Of these, 60% (6 lakh units) will be subscribed through private placement, while the remaining 4 lakh units worth Rs. 40 Crores will be available for the public to apply, with 5% allocated for mutual funds. The issuance aims to raise a total of Rs. 1 Arba.

    Nabil Investment Banking Limited will act as the issue manager for this debenture issuance. Interested investors can apply for a minimum of 25 units and a maximum of 1,00,000 units.

  • ADBL Distributes 2% Bonus Shares and Urges Shareholders to Dematerialize

    ADBL Distributes 2% Bonus Shares and Urges Shareholders to Dematerialize


    Agricultural Development Bank Limited (ADBL) has recently taken steps to benefit its shareholders by distributing 2% bonus shares directly to their Demat accounts. To encourage a smoother and more convenient process, the bank urges shareholders to convert their physical shares into electronic form. By doing so, shareholders can easily manage and trade their shares online, aligning with the industry trend towards digitalization.

    During the bank’s 16th Annual General Meeting held on the 14th of Chaitra, a 13% dividend for the fiscal year 2078/79 was approved. This decision reflects ADBL’s strong financial performance during that period. Additionally, during the 1000th meeting of the Board of Directors, held on Poush 26, it was decided to distribute the dividend based on the paid-up capital of Rs. 13.18 Arba. This distribution included a proposal for a 2% bonus share allocation and an 11% cash dividend.

    The allocation of bonus shares allows ADBL to provide its shareholders with additional shares in proportion to their existing holdings. This serves as a way for the bank to share its success with its shareholders and enhance their investment value. The direct deposit of the bonus dividend into the Demat accounts further streamlines the process and offers convenience to shareholders.

    In addition to the bonus shares, ADBL has proposed an 11% cash dividend on the paid-up capital of Rs. 13.18 Arba. This cash dividend distribution allows shareholders to receive a portion of the profits in cash, providing them with immediate financial returns. Moreover, the bank has also decided to distribute a 6% cash dividend specifically for Irredeemable Non-cumulative Preference Shares, ensuring that the holders of these shares also receive their fair share of the profits.

    ADBL’s recent initiatives, such as the direct allocation of bonus shares and the proposed dividends, aim to reward and benefit its shareholders. By urging shareholders to dematerialize their shares, the bank embraces digitalization trends and facilitates smoother transactions and ownership transfers. Through these measures, ADBL seeks to enhance shareholder value and foster a positive relationship with its investor community.

  • NLG, LLBS, ILBS, and SABSL List Bonus Shares on NEPSE

    NLG, LLBS, ILBS, and SABSL List Bonus Shares on NEPSE


    NLG Insurance Company Limited (NLG) has successfully listed 13,26,614.36 unit bonus shares on the Nepal Stock Exchange (NEPSE). This comes after the company’s 17th Annual General Meeting, held on the 20th of Chaitra, where a 10.5263% dividend for the fiscal year 2078/79 was approved. During a board of directors meeting on Mangsir 16, it was decided to distribute this dividend on the paid-up capital of Rs. 1,32,66,14,355. The proposal included 10% bonus shares worth slightly over Rs. 13.26 crores and 0.5263% cash dividend (for tax purposes) worth Rs. 69.28 lakhs. These bonus shares are now officially listed on the NEPSE. The last trading price (LTP) of NLG as of the last trading day stood at Rs. 645.

    Additionally, Laxmi Laghubitta Bittiya Sanstha Limited (LLBS) has listed 5,76,081 unit bonus shares on the NEPSE. This followed the company’s 11th Annual General Meeting, held on Falgun 29, where a 20% dividend worth Rs. 7.68 crores for the fiscal year 2078/79 was endorsed. During a board of directors meeting on Magh 04, it was decided to distribute this dividend on the paid-up capital of Rs. 38.40 crores. The proposal included 15% bonus shares worth slightly over Rs. 5.76 crores and a 5% cash dividend (for tax purposes) worth slightly over Rs. 1.92 crores. These bonus shares are now officially listed on the NEPSE. The LTP of LLBS as of the last trading day was Rs. 700.70.

    Similarly, Infinity Laghubitta Bittiya Sanstha Limited (ILBS) has listed 8,29,026.56 unit bonus shares on the NEPSE. The company approved a 20% bonus share during its 6th Annual General Meeting on the 13th of Falgun. In a board of directors meeting held on Poush 30, it was decided to distribute the 20% bonus shares worth Rs. 8,29,02,656.95 from the company’s paid-up capital. The current paid-up capital of ILBS is Rs. 41.45 crores. These bonus shares are now officially listed on the NEPSE. ILBS closed at Rs. 582 last week.

    Furthermore, Sabaiko Laghubitta Bittiya Sanstha Limited (SABSL) has listed 4,86,000 unit bonus shares on the NEPSE. This follows the company’s 6th Annual General Meeting, held on the 26th of Falgun, where an 18.95% dividend worth Rs. 5.11 crores for the fiscal year 2078/79 was endorsed. During a board of directors meeting on Magh 11, it was decided to distribute this dividend on the paid-up capital of Rs. 27 crores. The proposal included 18% bonus shares worth Rs. 4.86 crores and a 0.95% cash dividend (for tax purposes) worth Rs. 25.57 lakhs. These bonus shares are now officially listed on the NEPSE. The LTP of SABSL as of the last trading week was Rs. 624.

  • NEPSE Index Closes at 1,883.20 with 0.31% Gain

    NEPSE Index Closes at 1,883.20 with 0.31% Gain


    Today, the NEPSE index closed at 1,883.20, showing a gain of 5.88 points compared to the previous trading day. This represents a 0.31% increase. Yesterday, the index had gained 32.30 points.

    The trading day began with the index opening at 1,878.68 and reaching a high of 1,903.06 during the day. However, it also experienced a low of 1,874.40 before ultimately closing at 1,883.20.

    In terms of trading activity, there were 273 scrips traded through 34,331 transactions. The total number of shares exchanged amounted to 4,828,776, with a turnover of Rs. 1.6 Arba. This turnover is higher than the previous trading day’s turnover of Rs. 1.47 Arba.

    Among the companies, Rastriya Beema Company Limited (RBCL) recorded the highest gain of 10%, followed by ANLB with a gain of 9.99%. On the other hand, Adarsha Laghubitta Bittiya Sanstha Limited (ADLB) experienced the highest loss of 6.56% during the day.

  • Shangrila Development Bank Lists Bonus Shares on NEPSE

    Shangrila Development Bank Lists Bonus Shares on NEPSE


    hangrila Development Bank Limited (SADBL) has successfully listed 25,69,220.5471 unit bonus shares on the Nepal Stock Exchange (NEPSE). This follows the bank’s 18th Annual General Meeting, held on the 17th of Chaitra, where an 8.983% dividend worth Rs. 27.04 crores for the fiscal year 2078/79 was approved. During a board of directors meeting on Magh 26, it was decided to distribute this dividend on the paid-up capital of Rs. 3.01 Arba. The proposal included 8.534% bonus shares worth Rs. 25.69 crores and 0.449% cash dividend (for tax purposes) worth Rs. 1.35 crores. These bonus shares have now been officially listed on the NEPSE.

    As of now, the Last Traded Price (LTP) of SADBL stands at Rs. 290.

  • Arun Valley Hydropower Granted Approval to Issue 1:1 Right Shares for Shareholders

    Arun Valley Hydropower Granted Approval to Issue 1:1 Right Shares for Shareholders


     

    Arun Valley Hydropower Development Company Limited (AHPC) has received approval from the Electricity Regulatory Commission to issue right shares to its shareholders on a 1:1 basis. This means that each existing shareholder will have the opportunity to purchase one additional share for every share they currently hold.

    The decision to issue right shares was proposed during a board of directors meeting. AHPC plans to offer a total of 18,679,626 right shares, with a par value of Rs. 100 each, amounting to a value of Rs. 1.86 Arba. Out of this, half of the funds raised, approximately Rs. 93.39 crore, will be invested in the Likhu Khola Hydropower Project (30 MW) developed by PK Hydropower Pvt. Ltd. The remaining amount will be used to repay a loan taken by AHPC for the Kabeli ‘B’-1 Cascade Hydropower Project in Panchthar.

    However, it’s important to note that the issuance of the right shares is still pending final approval from the company’s Annual General Meeting (AGM) and the Securities Board of Nepal (SEBON), in addition to the endorsement received from the Electricity Regulatory Commission.