Category: Business | Market | Economy

  • Auction Alert: Multipurpose Finance Company Limited Promoters Initiate Share Auction for Eligible Shareholders

    Auction Alert: Multipurpose Finance Company Limited Promoters Initiate Share Auction for Eligible Shareholders


    Bijaya Kumar Thakur and Dhirendra Thakur, the current promoters of Multipurpose Finance Company Limited (MPFL), have commenced the auction of their respective promoter shares. Bijaya Kumar Thakur is offering 26,000 units, while Dhirendra Thakur is putting up 30,000 units for auction. This auction, which began on the 18th of Poush, 2080, is exclusively open to existing promoter shareholders.

    A total of 56,000 units of promoter shares are available for auction, and only shareholders meeting the eligibility criteria are encouraged to participate. The auction period spans 15 days from the publication date of this notice, providing existing promoter shareholders with a window to bid for these shares.

    As of the latest information, the Last Traded Price (LTP) for MPFL currently stands at Rs. 320. Simultaneously, another financial instrument associated with Multipurpose Finance Company Limited, MPFLPO, holds an LTP of Rs. 150.00, as recorded on December 5th, 2023. These details serve as additional context for potential investors considering participation in the ongoing auction of promoter shares, adding pertinent information to aid their decision-making process.

  • Sarbottam Cement Announces IPO for Industry-Affected Locals and Foreign Nepalese Immigrants, Following Successful QII Allotmen

    Sarbottam Cement Announces IPO for Industry-Affected Locals and Foreign Nepalese Immigrants, Following Successful QII Allotmen


    Sarbottam Cement Limited has issued an offer letter for an Initial Public Offering (IPO) targeting industry-affected locals of Nawalparasi District, mine excavation-affected locals of Palpa District, and Foreign Nepalese Immigrants. The IPO subscription period for the specified groups is set from 25th Poush to 10th Magh, 2080. Notably, if the issue remains undersubscribed for the industry-affected locals of Nawalparasi District and mine excavation-affected locals of Palpa District by the early closing date, it may be extended until Magh 25. However, there will be no extension for Foreign Nepalese Immigrants beyond the early closing date.

    Previously, Sarbottam Cement conducted the issuance of its primary shares through the book-building process for Qualified Institutional Investors (QII) from 6th to 10th Mangsir, 2080. The allotment for the 36,19,190 unit shares, against the initially offered 24 lakh units to eligible institutional investors, took place on the 11th Mangsir.

    The overall issuance plan involves Sarbottam Cement offering 12.9033% of its issued capital amounting to Rs. 4.65 Arba, equivalent to 60 lakh shares or 60 crores. Out of this, 40% (24 lakh shares) has already been issued and allotted to Qualified Institutional Investors, leaving the remaining 60% (36 lakh shares) for the general public.

    Among the general public shares, 9,30,000 units will be allocated to industry-affected locals of Nawalparasi District and mine excavation-affected locals of Palpa District. The remaining 26,70,000 units will be divided into two portions – 10% (2,67,000 units) for Nepalese citizens working abroad, and the remaining 24,03,000 units for the general public.

    Global IME Capital has been appointed as the issue manager, and applications can be submitted for a minimum of 50 units and a maximum of 10,000 units.

    The share price for common investors is set at Rs. 360.90 per share. The IPO is being conducted through the book-building method, where the ‘cut-off price’ during the primary shares allotment to Qualified Institutional Investors was Rs. 401. As per the guidelines, shares for the general public are offered at a 10% discount to the ‘cut-off’ price, resulting in Rs. 360.90 per share for common investors.

    ICRA Nepal has maintained its issuer rating of [ICRANP-IR] BBB+ and reaffirmed the long-term rating of [ICRANP] LBBB+ and the short-term rating of [ICRANP] A2 to Sarbottam Cement Limited.

  • Finance Minister Optimistic About 6% Economic Growth and Library Society’s Challenges Addressed at Annual Meeting

    Finance Minister Optimistic About 6% Economic Growth and Library Society’s Challenges Addressed at Annual Meeting


    Finance Minister Dr. Prakash Sharan Mahat expressed optimism about achieving a 6% economic growth rate, attributing it to the gradual recovery of the country’s economy. Speaking at the 20th annual general meeting of the Kathmandu Valley Public Library Society at Bhrikutimandap, Minister Mahat highlighted positive signs such as the increasing number of tourists, rising remittances, growing share prices, enhanced revenue, and overall economic activities.

    Minister Mahat underscored the successful resolution of budget anomalies through the implementation of a budget allocation system based on guaranteed resources in multi-year projects. He also noted a decline in bank interest rates, signaling a positive economic trend. The Finance Minister credited the improvement in the budget system for curbing the tendency to exceed budget allocations outlined in the budget Red Book.

    Dr. Narayan Khadka, the President of the Society, emphasized the significance of prioritizing libraries as hubs of knowledge, information, and national history. However, he expressed concerns about reduced government funding, the absence of a dedicated land plot for the library building, and increased rent imposed by the Social Welfare Council.

    During the event, Mahesh Agrawal and Tirtha Raj Onta were honored by the Society. The library, established in 2003, attracts more than 30,000 visitors annually and has 2,400 annual members. The Society has managed the library since 2005, amassing 37,614 donated books and acquiring 4,351 books through purchases.

    In a collaborative effort, Prof. Dr. Bhagawat Dhakal, Chief of Balmeeki Vidyapeeth, proposed allocating land to jointly construct the library building, addressing the budget constraints faced by the Vidyapeeth.

  • Nepal Rastra Bank is managing excess liquidity through ongoing withdrawals from the banking system

    Nepal Rastra Bank is managing excess liquidity through ongoing withdrawals from the banking system


    Amidst a surge in liquidity, the central bank is actively withdrawing deposits from banks and financial institutions, having withdrawn a substantial 105 arba rupees in the month of Poush alone. Despite these efforts, the average interest rate for deposits has moderately increased from 2.4784% to 2.8594% between Poush 1 and Poush 11.

    While managing liquidity, the interbank interest rate remains below the central bank’s deposit collection rate of 3%, indicating ample liquidity in the market. If lending activities don’t align with available liquidity, a further decrease in interest rates is possible.

    Recognizing the evolving situation, the central bank may reconsider policies and introduce more flexible provisions. Recent adjustments in the first quarter monetary policy review demonstrate an adaptive approach. Continued liquidity growth may prompt additional measures to maintain a balanced and stable financial environment.

  • Nabil Bank introduces ‘Instant Gold Loan’ for swift financial solutions

    Nabil Bank introduces ‘Instant Gold Loan’ for swift financial solutions


    Nabil Bank Limited (NABIL) has launched its new financial offering, the ‘Instant Gold Loan,’ designed to provide customers with quick access to funds. This scheme allows individuals to secure loans up to 10 lakh rupees at a competitive interest rate of 12.30%, ensuring loan disbursement within one hour.

    The emphasis is on the convenience of this service, addressing immediate financial needs with minimal complexities. Nabil Bank also provides complimentary insurance coverage for the gold used as collateral, enhancing security for borrowers.

    This innovative program caters to diverse financial requirements, and initially, Nabil Bank is rolling out the service through eight branches across Nepal. For valley customers, the service is accessible at Kumaripati, Kalimati, and Suryabinayak branches, while those outside the valley can avail it at Dharan-Mahendrapath, Butwal-Chauraha, Nepalgunj (Bhanubhakta Chowk), Phidim, and Chipledhunga branches.

  • SEBON Approves Singati Hydro Energy’s Rs. 1.45 Arba Rights Offering for Expansion and Debt Clearance

    SEBON Approves Singati Hydro Energy’s Rs. 1.45 Arba Rights Offering for Expansion and Debt Clearance


    The Securities Board of Nepal (SEBON) has granted approval to the rights offering proposal submitted by Singati Hydro Energy Limited (SHEL) on Poush 11, 2080. Under this approved plan, the company is set to issue 100% right shares valued at Rs. 1.45 Arba. This issuance will involve the distribution of 14,500,000 (1:1) units of right shares exclusively to its existing shareholders.

    Presently, Singati Hydro Energy Limited has a paid-up capital of Rs. 1.45 Arba. Following the implementation of the proposed right share issuance, involving 1.45 crore units, the company’s paid-up capital is slated to double, reaching Rs. 2.90 Arba.

    The hydropower firm asserts that the decision to introduce the right shares is aimed at generating funds for investments in other ventures and for settling outstanding debts. Kumari Capital has been appointed as the issue manager for this rights offering. The application for approval was submitted to the board on Ashad 27, 2080.

    As of the latest update, Singati Hydro Energy Limited (SHEL) concluded trading at Rs. 281.90.

  • Kumari Bank Limited Initiates Promoter Share Auction: Exclusive Opportunity for Existing Shareholders

    Kumari Bank Limited Initiates Promoter Share Auction: Exclusive Opportunity for Existing Shareholders


    The current promoters of Kumari Bank Limited (KBL) have initiated an auction for the sale of 3,40,016 units of shares exclusively to the existing promoter shareholders. The sellers include Srijana Paneru Neupane, who plans to sell 3,33,702 units, Hari Bahadur Thapa with an intention to sell 1,050 units, and Tarka Bahadur Budhathoki aiming to sell 5,264 units of promoter shares. Prospective buyers are invited to submit their bids within 35 days from the date of this notice’s publication, which is December 12th, 2023.

    Interested shareholders are required to place their bids at the central office of Kumari Bank Limited, situated in Naxal, Kathmandu. If there are no bids received from the existing founder shareholders within the specified time frame, the shares will subsequently be made available for auction to the general public.

    As of December 27th, 2023, Kumari Bank Limited (KBL) concluded trading at a closing price of Rs. 160.90. Additionally, the Kumari Bank Limited Promoter Share (KBLPO) recorded a Last Traded Price (LTP) of Rs. 108.00 as of December 20th, 2023.

  • Revival of Real Estate Expo: Unveiling Trends, Solutions, and Innovations in Nepal’s Property Market

    Revival of Real Estate Expo: Unveiling Trends, Solutions, and Innovations in Nepal’s Property Market


     

    The Nepal Land and Housing Development Association has announced the revival of the ‘Real Estate Expo,’ scheduled to run for four days starting Thursday. The event, previously halted since 2076 due to the COVID-19 pandemic, is expected to provide valuable insights into the current state of the real estate industry, along with addressing its challenges and solutions.

    Bidur Dhamala, President of the association and Coordinator of the Fair Coordinator Committee, highlighted the expo’s role in contributing to the development and expansion of the real estate business. The event aims to bring together businesses and consumers involved in scientific, orderly, and safe land development and urbanization for construction.

    The association envisions the expo as a platform where significant contributors to the real estate sector can showcase their latest products and services, fostering information exchange and networking. With a target turnover of 2.5 arba rupees during the four-day fair, the event will feature 60 stalls representing earthquake-resistant houses and apartments, land planning and development, construction material manufacturers and sellers, engineering and architecture consultants, as well as banking and insurance companies.

    Businesses specializing in electrical goods, furniture, pipes, sanitary ware fittings, paints, vehicles, decorative items, and insurance, banking, and architecture will participate in the expo, displaying their products and offering related consulting services.

    The ‘Real Estate Expo’ is poised to be a significant event for industry stakeholders, providing a platform for collaboration, knowledge-sharing, and showcasing the latest advancements in the real estate sector.

     

  • Prudential Capital Initiates Auction for Promoter Shares in Six Financial Institutions

    Prudential Capital Initiates Auction for Promoter Shares in Six Financial Institutions


    Prudential Capital Management Company Limited has initiated the auction of promoter shares from six financial institutions, namely Prabhu Bank Limited (PRVU), ICFC Finance Limited (ICFC), Nepal Life Insurance Company Limited (NLIC), Nepal Investment Mega Bank (NIMB), Kumari Bank Limited (KBL), and Prime Commercial Bank Limited (PCBL). The auction, spanning from the 11th Poush to the 19th Poush, 2080, is open to qualified interested parties, including promoter shareholders, the general public, and institutions.

    The auction involves 68,729 units of promoter shares from Prabhu Bank Limited, each with a minimum bid rate of Rs. 110 per unit. Interested bidders must meet a minimum bid quantity of 5,000 units. Similarly, Prudential Capital Management is offering 92,616 units of promoter shares from ICFC Finance Limited for auction, with a minimum bid rate set at Rs. 175 per unit and a minimum bid quantity of 10,000 units.

    For Nepal Life Insurance Company Limited, the auction encompasses 5,23,112 units of promoter shares, each available at a minimum bid rate of Rs. 325, and a minimum bid quantity of 10,000 units. Additionally, Prudential Capital Management is selling 1,09,678 units of promoter shares from Nepal Investment Mega Bank Limited with a minimum bid rate of Rs. 120 per unit and a minimum bid quantity of 10,000 units.

    The auction includes 5,49,626 units of promoter shares from Kumari Bank Limited, with a minimum bid rate set at Rs. 100 per unit, and a minimum bid quantity of 25,000 units. Furthermore, Prudential Capital Management is auctioning 49,717 units of promoter shares from Prime Commercial Bank Limited, with a minimum bid rate of Rs. 110 per unit and a minimum bid quantity of 5,000 units.

    Bidders are reminded to adhere to the regulations set by both Nepal Rastra Bank and Nepal Insurance Authority to ensure compliance with the specified quantity of shares per entity. Qualified interested parties, including promoter shareholders, the general public, and institutions, can participate in the auction until the 19th Poush. NIC Asia Capital Limited is designated as the auction manager for all six auctions.

  • Prudential Capital Initiates Auction of Shine Resunga Development Bank Promoter Shares

    Prudential Capital Initiates Auction of Shine Resunga Development Bank Promoter Shares


    Prudential Capital Management Company Limited has initiated the auction of 2,04,537 units of promoter shares belonging to Shine Resunga Development Bank Limited (SHINE). The auction commenced on the 11th of Poush, 2080.

    In this auction, the specified quantity of promoter shares for SHINE is 2,04,537 units, with a minimum bidding rate set at Rs. 120 per unit. Interested bidders must adhere to the minimum bid quantity of 5,000 units for promoter shares, while also complying with the Nepal Rastra Bank’s regulation limiting the share quantity per entity. The auction is open for participation by promoter shareholders, the general public, and institutions until the 19th of Poush.

    The auction management responsibility falls on NIC Asia Capital Limited.

    As of the latest available information, SHINE has a Last Traded Price (LTP) of Rs. 398.90.

  • NEPSE Ends Suspension on Muktinath Bikas Bank Securities Trading Following Dividend Disclosure Delay

    NEPSE Ends Suspension on Muktinath Bikas Bank Securities Trading Following Dividend Disclosure Delay


    NEPSE, the Nepal Stock Exchange Limited, has decided to end the suspension on the trading of securities for Muktinath Bikas Bank Limited (MNBBL). This follows a temporary pause resulting from MNBBL’s delayed submission of information related to the dividend declaration for the fiscal year 2079/80.

    In an official statement, NEPSE disclosed that MNBBL failed to provide timely details about the dividend declaration, a requirement stipulated by the Securities Listing Regulations, 2075. These regulations mandate that companies communicate notices, information, and decisions affecting securities prices to NEPSE on or before the day of business commencement.

    The decision regarding the dividend declaration for the fiscal year 2079/80 was made during MNBBL’s board meeting on the 5th of Poush. However, the information about this decision reached NEPSE a day later, on the 6th of Poush, leading to an immediate suspension of MNBBL securities trading. NEPSE sought clarification from MNBBL within a three-day timeframe.

    MNBBL responded to NEPSE’s inquiry, explaining that the delay was unintentional and was a result of coincidental timing. They clarified that the discussion on the dividend took place during the meeting at 4:30 P.M. on the 5th of Poush.

    Despite MNBBL’s clarification, NEPSE, in a decision dated 2080/09/11, issued a warning to MNBBL and directed the resumption of the suspended securities transactions. The warning underscores MNBBL’s obligation to fully comply with the Securities Listing Regulations, 2075, and its associated terms.

  • Purwanchal Lube Oil Limited Announces 24th AGM with Key Agendas and Company Overview

    Purwanchal Lube Oil Limited Announces 24th AGM with Key Agendas and Company Overview


    Purwanchal Lube Oil Limited has scheduled its 24th Annual General Meeting (AGM) for the 29th of Poush, 2080. The venue for the meeting is set to be the Company Register Office in Sundarharaicha, Morang, Biratchowk, commencing at 11 AM on the specified day.

    The proposed agendas for the AGM include the endorsement of the company’s annual report, approval of the auditor’s report for the fiscal year 2079/80, along with Profit and Loss (PNL) statements, financial reports, and cash flow reports. Additionally, the AGM will address the appointment of auditors and the determination of their remuneration for the fiscal year 2080/81. Other items on the agenda involve the proposal of cash dividends (including tax) and bonus shares for existing shareholders, the issuance of an Initial Public Offering (IPO) to the general public, and the passage of resolutions related to necessary amendments to the company’s rules and regulations.

    Furthermore, the AGM aims to authorize the Board of Directors to modify the Articles of Association and Regulations, allowing for adjustments or additions related to the issuance of primary shares in accordance with directives from regulatory bodies.

    Established in 2000 by Purwanchal Lube Oil Pvt Ltd, Purwanchal Lube Oil (PLO) has become a prominent lubricant brand in the Nepali market. Over the past 23 years, the company has been manufacturing Engine Oil, Lubricants, Grease, and other petroleum products. PLO has successfully distributed its products through a network of more than 93 dealers and over 11,000 retailers across Nepal, offering a variety of imported lubricant brands.