Year: 2023

  • Large Taxpayer Office Reports Record Profit Tax Collection of Rs. 12.5 Arba from Mergers, Acquisitions, and FPOs

    Large Taxpayer Office Reports Record Profit Tax Collection of Rs. 12.5 Arba from Mergers, Acquisitions, and FPOs


    The Large Taxpayer Office has reported the successful collection of Rs. 12.5 Arba in profit tax, derived from mergers, gains from acquisitions, and profits generated from Follow-On Public Offerings (FPOs). This significant amount was gathered on Friday and Saturday through detailed filings by numerous organizations. On Friday, 30 organizations contributed to this sum, filing taxes amounting to Rs. 11.3 Arba, with an additional 11 institutions filing taxes on Saturday, totaling Rs. 1.44 Arba. Mr. Janak Sharma, the head of the Large Taxpayer Office, commended both public and private entities for their proactive engagement in meeting their tax obligations.

    It was disclosed that among the 41 organizations paying taxes on profits from FPO, 14 also paid taxes on profits from both FPO and bargain purchases resulting from mergers and acquisitions. This tax collection falls under the current financial year, representing a substantial boost in revenue.

    This initiative was prompted by persistent recommendations from the Office of the Auditor General, raising concerns about tax evasion related to FPO premiums, gains from bargain purchases in mergers and acquisitions, and auction share sales. The Ministry of Finance and the Inland Revenue Department initially overlooked these concerns but took action following the 60th report of the Office, emphasizing the recovery of revenues from these sources.

    In response, Finance Minister Dr. Prakash Sharan Mahat introduced an arrangement to encourage timely payment of revenues. Companies paying taxes on FPO premiums, bargain purchase gains, and auction share sales by the end of Mangsir would be exempted from fines and interests. Despite legal scrutiny, the constitutional bench of the Supreme Court recently dismissed a petition filed by 16 Banking and Financial Institutions (BFIs), upholding the government’s position that the taxation did not constitute a levy on capital.

    The BFIs were given a deadline to deposit the specified amount by the end of Mangsir, and companies proactively met this deadline, contributing significantly to the substantial revenue collection observed over the weekend. The detailed breakdown of tax payments by various BFIs under different titles is provided, with a total of Rs. 7 Arba 97 Crores 87 lakhs remitted under FPO and Rs. 4 Arba 49 Crores 81 Lakhs for benefit of Bargain Purchases.

  • “Auction Alert: Shree Ganesh Properties Initiates Auction of Himalayan Life Insurance Promoter Shares”

    “Auction Alert: Shree Ganesh Properties Initiates Auction of Himalayan Life Insurance Promoter Shares”


    Shree Ganesh Properties & Investment Private Limited has initiated the auctioning of 1,24,833 promoter shares of Himalayan Life Insurance Limited (HLI), starting from the 1st to the 6th of Poush, 2080.

    During this auction, a total of 1,24,833 promoter shares of HLI are available for bidding, with a minimum bid quantity set at 10,000 units. Bidders are required to adhere to the regulations of the Nepal Insurance Authority, ensuring that the specified quantity of shares per entity is not exceeded. Eligible participants for the auction include interested promoter shareholders, the general public, and institutions. The minimum bid rate for the auction has been set at Rs. 250. Investors interested in participating in the auction should submit their bids at the central office of NIC Asia Capital Limited, located at Thapathali-11, Kathmandu, specifically on the 4th floor of Trade Tower.

    NIC Asia Capital Limited is appointed as the auction manager for this particular issue. As of the latest update, Himalayan Life Insurance Limited has a Last Traded Price (LTP) of Rs. 446.

    A formal Auction Notice has been issued to provide detailed information and guidelines for interested parties.

  • NEPSE Index Surges by 1.39%, Records Highest Turnover in Five and a Half Months

    NEPSE Index Surges by 1.39%, Records Highest Turnover in Five and a Half Months


    The Nepal Stock Exchange (NEPSE) Index marked a notable increase of 27.75 points or 1.39% from the previous day’s closing, concluding at 2,022.35 points. In the prior trading session, the index had gained 6.55 points.

    The day’s market activity commenced with the index opening at 1986.06, reaching an intraday low of 1,951.02, and achieving an intraday high of 2,022.82.

    During today’s trading session, a total of 295 different stocks were traded in 101,128 transactions. The volume of shares exchanged amounted to 17,166,465, resulting in a total turnover of Rs. 5.15 Arba, marking the highest turnover recorded by NEPSE in the past five and a half months. The market capitalization stood at Rs. 31.19 Kharba, with a float market capitalization of Rs. 10.84 Kharba.

    Himal Dolakha Hydropower Company Limited (HDHPC) led in terms of turnover, reaching Rs. 25.12 crores and closing at a market price of Rs. 146.

    Additionally, eleven companies experienced positive circuit hits during the day. On the downside, Himalayan Laghubitta Bittiya Sanstha Limited (HLBSL) incurred the highest loss of 6.77%.

    Regarding sector performance, three sectors closed in the negative, with the “HydroPower Index” witnessing the highest gain of 5.55%, while the “Banking SubIndex” incurred a loss of 0.67%.

  • Dibyashwari Hydropower Company Reverses Right Share Issue Ratio to 1:1 Amid Strategic Capital Allocation Plans

    Dibyashwari Hydropower Company Reverses Right Share Issue Ratio to 1:1 Amid Strategic Capital Allocation Plans


    Dibyashwari Hydropower Company Limited (DHPL) has modified its previously proposed right share issue ratio. During the Board of Directors (BOD) meeting held on Mangsir 29, the company now suggests a 1:1 ratio, meaning a 100% right share issuance.

    Initially, the company had planned a 1:1 or 100% right share issuance on Ashad 10, 2080. However, a subsequent BOD meeting on Ashwin 29 retracted the earlier proposal and put forth a new plan for a 200% issuance based on the current paid-up capital in a ratio of 1:2. Nevertheless, this decision has been revised again, and the current proposal stands at a 1:1 ratio, translating to a 100% right share issuance.

    DHPL intends to allocate 51% of the capital obtained from the right issue into Five Khapan Hydropower. The company asserts that the decision to initiate the right share issuance is driven by the need to settle outstanding loans acquired from banks.

    It’s important to note that the final approval of this decision is contingent upon regulatory approval and subsequent endorsement at the upcoming Annual General Meeting (AGM) of the company. At the time of this writing, DHPL’s closing stock price is recorded at Rs. 182.

  • Attention Shareholders: Nepal SBI Bank Calls for Collection of Unclaimed Dividends

    Attention Shareholders: Nepal SBI Bank Calls for Collection of Unclaimed Dividends


    Nepal SBI Bank Limited (SBI) has released a notification calling upon its shareholders to retrieve outstanding dividends that remain uncollected. The announcement highlights that certain investors have yet to claim dividends allocated during the fiscal year 2074/75. The dividend disbursement took place in the aforementioned fiscal year when the bank distributed cash dividends to its shareholders.

    To facilitate the retrieval process, the bank is urging shareholders who have not yet availed themselves of their dividend entitlements to visit Nepal SBI Merchant Banking, located in Thamel, within the next month. To complete the claim, investors are required to present valid identification or their share certificates along with proof of identity.

    As of the latest update, the Last Traded Price (LTP) for SBI stands at Rs. 322. This initiative aims to ensure that all shareholders receive their due dividends, emphasizing the importance of timely collection to those who may have overlooked or not yet claimed their share of the fiscal year 2074/75 dividend distribution.

  • “NEPSE Weekly Review: Index Surges 7.66%, Technical Analysis, and Market Highlights”

    “NEPSE Weekly Review: Index Surges 7.66%, Technical Analysis, and Market Highlights”


     

    In the current trading week, the NEPSE index concluded at 1,994.60, marking a notable increase of 141.83 points (7.66%). This follows a marginal loss of 0.31% in the previous week when the index closed at 1,852.77. The week saw the index’s volatility range from 1,866.06 to 2,016.87, totaling 150.81 points, a significant rise from the 30.99 points observed in the prior week.

    Momentum indicators reveal a daily RSI reading of 67.98 and a weekly RSI reading of 53.53. The MACD line and Signal line are both in the positive zone, indicating positivity, with the MACD reading at 20.95. The NEPSE index currently stands above its 5-day and 20-day Moving Averages, signaling a bullish trend that warrants further confirmation. Potential support is identified in the 1,908 – 1,923 zone, while resistance is anticipated in the 2,030 – 2,060 zone.

    **Part 2: Insight into Key Data**

    The highest intraday gain occurred on Sunday, reaching 111.21 points with a turnover of Rs 0.45 Arba, contributing to a total weekly turnover of Rs 16.66 Arba. Trading activity involved more than 5.02 crore unit shares through 3,60,771 transactions. NEPSE’s current market capitalization is reported at Rs. 3,075,147.62 million, equivalent to Rs 30.75 Kharba.

    NEPSE’s index displayed a robust 7.66% increase this week, with all sector indices closing in positive territory.

    **Stock Performance Metrics:**
    – **Monthly Beta Leaders:** Panchakanya Mai Hydropower Limited (PMHPL), Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS), and United Idi-Mardi and R.B. Hydropower Limited (UMRH) lead with betas of 2.07, 2.021, and 1.902, respectively.
    – **Top Gainer:** Dolti Power Company Ltd (DOLTI) emerged as the top gainer, closing at Rs. 330.50 with a significant increment of Rs. 118.50 (55.90%).

    **Top Loser of the Week:**
    – **10% Prime Debenture 2088 (PBD88):** Experienced a decrease of 4.24%, settling at an LTP of Rs. 970.

    **Market Activities:**
    – **Top-Traded Stock:** Sonapur Minerals and Oil Limited (SONA) led the charts with a total trade value of Rs. 74.56 Crores.
    – **Top Buyer Broker:** Vision Securities Pvt. Ltd (Broker No- 34) emerged as the leading buyer broker, purchasing stocks worth Rs. 90.55 Crores.
    – **Top Seller Broker:** Naasa Securities Co. Ltd (Broker No- 58) took the lead as the top seller broker, with sales amounting to Rs. 80.77 Crores.

     

  • IPO Launch and Strong Investor Interest: Himalayan Reinsurance Limited’s Milestone in Nepal’s Financial Market

    IPO Launch and Strong Investor Interest: Himalayan Reinsurance Limited’s Milestone in Nepal’s Financial Market


    Himalayan Reinsurance Limited initiated the issuance of 2,49,00,000 units of IPO shares to the public starting from the 27th of Mangsir, 2080. The early closing date for this offering is set on the 1st of Poush, with the possibility of extension up to the 11th of Poush, 2080, if the subscription is not fully met.

    Out of the total 3,00,00,000 units, a portion has already been allocated – 10% (30,00,000 units) for Nepalese citizens working abroad, 2% (6,00,000 units) for company employees, and 5% (15,00,000 units) for mutual funds. The remaining 2,49,00,000 units are made available to the general public at a cost of Rs. 206 per share, inclusive of a Rs. 100 face value and a Rs. 106 premium.

    NMB Capital Limited holds the position of the issue manager, overseeing the application process. Interested parties can submit applications for a minimum of 10 units and a maximum of 3,00,000 units. As per the Central Depository and Clearing Company (CDSC), a total of 888,744 applicants have applied for 16,008,080 units, amounting to Rs. 3.29 Arba. Consequently, the subscription rate stands at 64.29% as of 10 AM.

    ICRA Nepal has reconfirmed an issuer rating of [ICRANP-IR] A- for Himalayan Reinsurance Limited. This rating, denoted as ICRA NP Issuer Rating A Minus, signifies a satisfactory level of safety concerning the company’s ability to meet financial obligations in a timely manner. Companies with such ratings are considered to have low credit risk.

    Established in 2021, Himalayan Reinsurance Limited is the second reinsurance company in Nepal to issue an IPO. As a leading private-sector reinsurance firm, it specializes in providing reinsurance support to both Life and Non-Life Insurance Companies within Nepal and internationally. The company received its operational license in 2021, marking a significant milestone in its operations.

  • “NEPSE Index Shows Resilience with 6.55 Points Gain, Marking Positive Trends in Nepal’s Stock Market”

    “NEPSE Index Shows Resilience with 6.55 Points Gain, Marking Positive Trends in Nepal’s Stock Market”


    The NEPSE Index in Nepal has recorded a gain of 6.55 points, equivalent to 0.32%, surpassing the previous day’s closing and concluding at 1,994.60 points. This follows a 2.60 point increase on the day prior, and notably, after the recent review of the monetary policy on Friday, the index has seen a cumulative gain of 141.81 points over the course of five trading days.

    The day’s trading began with the market opening at 1989.53. It experienced an intraday low of 1,973.42 but rebounded to reach an intraday high of 1,997.12.

    Throughout today’s trading session, there were 300 different stocks involved in 66,955 transactions. The total volume of shares traded amounted to 9,637,455, resulting in a total turnover of Rs. 3.15 Arba. The market capitalization stood at Rs. 30.75 Kharba, and the float market capitalization was reported at Rs. 10.71 Kharba.

    Sonapur Minerals And Oil Limited (SONA) led in turnover, reaching Rs. 16.04 crores, and closed at a market price of Rs. 361.80.

    Similarly, eight companies experienced positive circuits for the day. Conversely, Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) faced the highest loss of 4.98%, followed by MLBS and CYCL at 4.78% and 4.04%, respectively.

    In terms of sector indices, five sectors concluded in the red. The “Others Index” demonstrated the highest gain of 1.51%, while the “Trading Index” observed a loss of 0.92%.

  • “Nepal’s Economic Triumph: Robust Balance of Payments Surplus Signals Financial Stability”

    “Nepal’s Economic Triumph: Robust Balance of Payments Surplus Signals Financial Stability”


    In a positive economic development, a report from the Nepal Rastra Bank reveals that Nepal’s balance of payments (BOP) has maintained a surplus of Rs.147.11 billion, marking a significant increase compared to the Rs.20.03 billion surplus recorded in the same period the previous year, based on data ending in mid-November.

    Expressed in US Dollars, the BOP surplus for the review period reached 1.11 billion, slightly lower than the 149.6 million surplus in the corresponding fiscal year. The current account has also displayed improvement, registering a surplus of Rs.96.38 billion in contrast to a deficit of Rs.37.79 billion in the previous year. In US Dollar terms, the current account surplus reached 725.1 million, a notable contrast to the 296.1 million deficit in the same period last year.

    The report underscores a 46.6% decrease in capital transfer to Rs.1.59 billion, while net foreign direct investment (FDI) remained positive at Rs.3.64 billion, marking a significant increase from the Rs.429.2 million recorded in the previous year. Merchandise imports witnessed a 3.8% decrease, totaling Rs.512.50 billion, with notable shifts in import categories and sources.

    Trade patterns at various customs points exhibited mixed trends, with some experiencing increases while others faced decreases. The total trade deficit reduced by 3.3% to Rs.461.94 billion during the review period, contributing to an improved export-import ratio of 9.9%, down from 10.3% in the corresponding period last year.

    Merchandise imports from India, paid in convertible foreign currency, amounted to Rs.53.84 billion during the review period, showing an increase from Rs.42.69 billion in the same period the previous year. Overall, the report signals positive strides in Nepal’s economic indicators, with the BOP surplus indicating enhanced financial stability.

  • Shree Investment Finance Company Proposes 5.05% Cash Dividend for FY 2079/80

    Shree Investment Finance Company Proposes 5.05% Cash Dividend for FY 2079/80


    Shree Investment Finance Company Limited (SIFC) has put forward a proposal for a 5.05% cash dividend amounting to Rs. 4.96 for the fiscal year 2079/80. This decision was reached during the 336th board meeting held on Mangsir 26, with the dividend distribution derived from the company’s paid-up capital of Rs. 98.16 crores. The proposed 5.05% cash dividend is valued at slightly over Rs. 4.96 crores.

    Subject to approval by the central bank and subsequent endorsement during the company’s upcoming Annual General Meeting (AGM), the dividend will be distributed. As of the current update, Shree Investment Finance Company Limited’s Last Traded Price (LTP) is Rs. 355.

  • Laxmi Sunrise Bank Proposes 7.37% Dividend for Fiscal Year 2079/80 After LBL-SRBL Merger

    Laxmi Sunrise Bank Proposes 7.37% Dividend for Fiscal Year 2079/80 After LBL-SRBL Merger


    Laxmi Sunrise Bank Limited (LSL) has proposed a dividend of 7.37% for the fiscal year 2079/80. This proposal was put forward during the 283rd board meeting held on December 12, 2023. The dividend is calculated based on the company’s paid-up capital, which currently stands at Rs. 21.67 Arba. The proposed dividend includes 7% bonus shares amounting to 15,169,166.50 Units and a 0.37% cash dividend, inclusive of tax, totaling Rs. 79,837,718.

    However, the final approval of this decision rests with the Nepal Rastra Bank, and subsequent endorsement is required during the Annual General Meeting (AGM) of the company.

    It is noteworthy that Laxmi Bank Limited (LBL) and Sunrise Bank Limited (SRBL), both licensed financial institutions under category “A” from Nepal Rastra Bank (NRB), successfully completed their merger at a share swap ratio of 1:1. The paid-up capital of LBL was Rs. 11.55 Arba, and SRBL had a paid-up capital of Rs. 10.11 Arba. The merger resulted in a combined paid-up capital of Rs. 21.67 Arba.

    The newly formed entity resulting from the merger is named “Laxmi Sunrise Bank Limited,” and it commenced its integrated business operations from Ashad 29.

  • Kumari Bank and NEPSE Seal Deal for Listing 10% KBL Debenture 2090

    Kumari Bank and NEPSE Seal Deal for Listing 10% KBL Debenture 2090


    Kumari Bank Limited (KBL) and the Nepal Stock Exchange (NEPSE) finalized an agreement today for the listing of “10% KBL Debenture 2090” (KBLD90).

    Under the terms of the agreement, 50,00,000 units of the debenture are set to be listed at a par value of Rs. 1000 per unit. The subscription period for the issue was open from the 2nd Kartik to the 13th Kartik in the year 2080.

    The commencement of share trading is expected to take place on Thursday. Nabil Investment Banking Limited served as the issue manager for this process, and in accordance with existing laws, the stocks were officially listed on NEPSE on the 22nd of Mangsir in the year 2080.

    As indicated by its name, the “10% KBL Debenture 2090” is a debenture with a maturity period of 10 years and a fixed coupon rate of 10%.