Category: Articles & Updates

  • Butwal Power Company Calls 31st AGM: Endorses 5% Dividend and Proposes FPO

    Butwal Power Company Calls 31st AGM: Endorses 5% Dividend and Proposes FPO


    Butwal Power Company Limited (BPCL) has announced its 31st Annual General Meeting (AGM) scheduled for the 29th of Poush, 2080, corresponding to January 14, 2024. The meeting is set to take place at Karki Banquet, Babarmahal, Kathmandu, starting at 11 am on the specified day.

    Among the various agendas to be discussed at the AGM, one notable item is the endorsement of a 5 percent dividend for the fiscal year 2079/80. The decision to distribute a 5% cash dividend on the paid-up capital of Rs. 3.4 Arba was made during the board of directors’ meeting on Mangsir 29.

    Additionally, the AGM will address the endorsement of the auditor’s report, covering profit and loss statements, financial reports, and cash flow reports. The appointment of an auditor for the fiscal year 2080/81 is also on the agenda. Another crucial topic for discussion is the proposal from the Board of Directors to issue 1 Crore units of Follow-on Public Offering (FPO) shares at a par value of Rs. 100. The current paid-up capital of the company stands at Rs. 3.40 Arba, and after the FPO issuance, it will increase to Rs. 4.40 Arba.

    The book closure date has been specified from Poush 19 to Poush 29. Shareholders maintaining their shares until this date are entitled to the dividend payout and are also eligible to attend the AGM.

  • Budhanilkantha Heritage Hotel Calls 5th AGM with IPO Proposal and ICRA Nepal Rating

    Budhanilkantha Heritage Hotel Calls 5th AGM with IPO Proposal and ICRA Nepal Rating


    Budhanilkantha Heritage Hotel Limited has announced its 5th Annual General Meeting (AGM), scheduled for the 27th of Poush, 2080 (equivalent to January 11, 2024). The meeting will take place at the company’s registered office in Budhanilkantha, Kathmandu, Nepal, beginning at 4:00 p.m.

    Among the various agendas, one notable item is the proposal to issue an Initial Public Offering (IPO) representing 15% of the company’s issued capital. Additionally, the AGM will cover the endorsement of the auditor’s report, including profit and loss statements, financial reports, and cash flow reports. The appointment of an auditor for the fiscal year 2080/81 will be discussed, along with the approval of decisions made by the board of directors. There is also an agenda empowering the Board of Directors to make essential amendments, additions, reductions, or alterations in the Articles of Association and Regulations during the issuance of the IPO.

    ICRA Nepal has assigned a long-term rating of [ICRANP] LB+ to the NPR 900-million long-term loans (including proposed limits) of Budhanilkantha Heritage Private Limited (BHPL).

    Incorporated in November 2018, Budhanilkantha Heritage Private Limited serves as a special-purpose vehicle (SPV) for the ownership and operation of a proposed nine-storied 5-star hotel under construction in Budhanilkantha, Kathmandu. The plot size for the hotel is approximately 5,820 square meters. The promoter group comprises professionals, including chartered accountants, doctors, and private entrepreneurs. BHPL represents the first hotel project for the promoter group and is currently under construction, with targeted commercial operations expected to commence in December 2021.

  • Government Sets Minimum Purchase Price for Sugarcane to Boost Farmer Compensation

    Government Sets Minimum Purchase Price for Sugarcane to Boost Farmer Compensation


    During a recent Cabinet meeting held at Singhadurbar, the government made a significant decision to establish the minimum purchase price for sugarcane at Rs 635 per quintal. The official announcement of this decision was made by government spokesperson Rekha Sharma.

    As per the newly implemented regulation, sugarcane mills are now required to directly pay Rs 565 per quintal to the farmers. Additionally, the government will extend a subsidy of Rs 70 per quintal to support farmers involved in the sugarcane industry.

    Spokesperson Sharma also revealed that the meeting involved a comprehensive review of the government’s progress over the past year. Chief Secretary Dr. Baikuntha Aryal presented insights during the session, emphasizing the urgency to expedite government activities and enhance decision-making processes, laws, and legislation.

    This decision is anticipated to have a positive impact on sugarcane farmers, ensuring they receive fair and reasonable compensation for their produce. Ultimately, it is expected to contribute to the overall growth and sustainability of the agricultural sector.

  • NEPSE Index Surges to Five-Month High: A Overview of Today’s Market Trends

    NEPSE Index Surges to Five-Month High: A Overview of Today’s Market Trends


    The Nepal Stock Exchange (NEPSE) Index showed significant growth, increasing by 45.98 points or 2.23% from the previous day’s closing, concluding at 2,106.48 points. This marks the highest point the NEPSE has reached in almost five months, following a gain of 38.14 points in the preceding trading day.

    The market opened at an index of 2065.06, hitting an intraday low of 2,053.27, and reaching an intraday high of 2,107.32. Today’s trading activity involved 313 different stocks traded in 99,641 transactions. The total volume of shares traded amounted to 16,457,138, resulting in a turnover of Rs. 5.98 Arba. The market capitalization stood at Rs. 32.61 Kharba, with a float market capitalization of Rs. 11.29 Kharba.

    Notably, SHIVAM CEMENTS LTD (SHIVM) led in turnover, reaching Rs. 37.43 crores, and closed at a market price of Rs. 594. Eleven companies experienced positive circuit hits for the day, with a noteworthy emphasis on cement companies. On the contrary, Siddhartha Investment Growth Scheme – 2 (SIGS2) suffered the highest loss of 7.26% during the day.

    In terms of sector indices, all sectors closed in positive territory, with the “Hotels And Tourism Index” registering the highest gain at 6.94%, while the “Finance Index” recorded a more modest gain of 0.42%.

  • “Nepal Handicraft Fair Wraps Up with Rs 20 Million in Transactions, Emphasizing Global Market Promotion”

    “Nepal Handicraft Fair Wraps Up with Rs 20 Million in Transactions, Emphasizing Global Market Promotion”


    The handicraft fair in the federal capital, which took place from December 14 to 18, recently concluded with a reported transaction sum of Rs 20 million, as disclosed by the Nepal Handicrafts Federation. The central goal of the event was to enhance the global market presence of Nepali handicrafts.

    Various provincial and district handicrafts associations, alongside commodity associations, actively participated in the fair, displaying a wide array of products such as jewelry, cotton clothes, pashmina, leather goods, natural fibers, and bamboo items. Featuring approximately 120 sales stalls, the fair sought to fortify commercial connections between domestic entrepreneurs and handicraft importers.

    Ram Krishna Chitrakar, the Industry Minister at Bagmati Province, highlighted the substantial impact of handcrafted goods on the national economy. He emphasized that these products not only contribute to foreign currency earnings but also play a vital role in promoting entrepreneurship and generating employment. Chitrakar stressed the importance of safeguarding and expanding this sector.

    According to the Nepal Handicrafts Federation, the country presently exports handicrafts to more than 60 nations, with the overall market value estimated at Rs 24 billion. Around 1.1 million individuals are involved in this sector, making a significant contribution to both the national economy and the creation of job opportunities.

    On an annual basis, Nepal exports handicrafts amounting to Rs 12 billion, indicating the robust presence of the sector in the global market.

  • Capital Gains Tax Soars Over 262% in Mangsir, Fueled by Short-Term Investors’ Surge

    Capital Gains Tax Soars Over 262% in Mangsir, Fueled by Short-Term Investors’ Surge


    In a notable development, the capital gains tax collected from the stock market has experienced a remarkable surge, witnessing a staggering 262% increase in the month of Mangsir compared to the preceding month of Kartik. The government’s revenue from capital gains tax saw a substantial rise from Rs 8.41 crore in Kartik to an impressive Rs 30.53 crore in Mangsir.

    A closer examination of the data reveals that the surge in capital gains tax during Mangsir was primarily driven by short-term investors, who contributed significantly to the overall increase. Short-term investors individually paid Rs 14.14 crore in Mangsir, a considerable jump from the Rs 4.60 crore paid in Kartik. Following suit, long-term investors also played a role in this surge, contributing the second-highest amount of profit tax, amounting to Rs 9.24 crore in Mangsir as opposed to the Rs 2.69 crore in Kartik. Despite being in third place, institutional investors made a noteworthy contribution of Rs 7.14 crore in Mangsir, a significant increase from their Rs 1.11 crore contribution in Kartik.

    The government imposes a tax on the profits derived from buying and selling shares in the secondary market, with individual investors subjected to a 7.5% tax rate and long-term transactions enjoying a reduced rate of 5%. This substantial increase in capital gains tax indicates a vibrant and robust performance in the stock market, with short-term investors taking the lead in contributing to the government’s revenue.

  • “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.

  • “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.

  • 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%.

  • Himalayan Capital and NEPSE Ink Agreement for Listing ‘Himalayan 80-20’ Fund

    Himalayan Capital and NEPSE Ink Agreement for Listing ‘Himalayan 80-20’ Fund


    Today, representatives from Himalayan Capital Limited and the Nepal Stock Exchange (NEPSE) finalized an agreement for the listing of “Himalayan 80-20.”

    Under the terms of the agreement, 10,00,00,000 units of “Himalayan 80-20” are set to be listed at a par value of Rs. 10 per unit. The subscription period for the issue was open to the general public from the 32nd of Shrawan to the 15th of Bhadra in the year 2080 and subsequently extended to institutions.

    Trading for the shares is anticipated to commence on Thursday. “Himalayan 80-20” is categorized as a closed-end fund and will be traded on the NEPSE platform. Notably, the fund comes with a maturity period of 10 years.

     

  • Government Commission Successfully Resolves Over 5,000 Usury Complaints, Returns Assets to Victims

    Government Commission Successfully Resolves Over 5,000 Usury Complaints, Returns Assets to Victims


    The Commission formed by the government to investigate and resolve cases related to usury has effectively handled 5,155 out of the 28,000 received complaints, according to Uttamraj Subedi, a Commission member and Additional Inspector General of Police. Since its inception, the Commission has facilitated the return of 218 bigha 10 kattha 7 dhur (793) to victims from usurious lenders through reconciliation.

    In their study, the Commission found documented transactions exceeding Rs 5.857 billion between victims and loan sharks. The lenders asserted a pending recovery of over Rs 1.62 billion from victims. Notably, a consensus settlement between the parties resolved transactions totaling over Rs 1.72 billion, as disclosed by the Commission.

    Victims’ applications were collected from April 30 to May 28, with 21,552 complaints registered from eight districts in Madhesh Province and 1,862 from Nawalparashi Paschim. Gauri Bahadur Karki, the Commission Chairperson, confirmed that the Commission submitted its report to the Prime Minister last Tuesday. Karki added that among the 39 districts, 29 reported cases, both registered and resolved, indicating that 39 districts had no usury problems.

    To tackle issues related to loan-sharking, the government established a three-member high-powered Commission, and the corresponding law was passed and enforced by the Parliament. The Commission’s dedicated efforts underscore a commitment to safeguarding vulnerable individuals from usurious practices.

  • Kamana Sewa Bikas Bank Limited Initiates Auction of 5,09,892 Promoter Shares: Exclusive Opportunity for Former Promoter Shareholders

    Kamana Sewa Bikas Bank Limited Initiates Auction of 5,09,892 Promoter Shares: Exclusive Opportunity for Former Promoter Shareholders


    The current promoters of Kamana Sewa Bikas Bank Limited (KSBBL) have initiated the auction of 5,09,892 units of shares, starting from the 25th of Mangsir, 2080. This auction is exclusively open to interested former promoter shareholders of the bank. Eligible bidders have a 35-day window from the publication date of this notice, which is also the 25th of Mangsir, to submit their bids. Bids should be submitted at the central office of the bank, situated in Gyaneshwor, Kathmandu.

    In the event that no bids are received from the existing former promoter shareholders within the stipulated timeframe, the shares will subsequently be made available for auction to the general public. The closing price of KSBBL stood at Rs. 318 in the previous trading session. It is noteworthy that as of the 15th of August, 2023, KSBBLP (presumably referring to the bank’s promoter shares) has a Last Traded Price (LTP) of Rs. 156.00.

    This auction notice outlines the terms and conditions for former promoter shareholders to participate in the bidding process, emphasizing the specific timeframe and location for bid submission. The market values of KSBBL and KSBBLP provide additional context to potential bidders regarding the current financial standing of the bank and its promoter shares.