Tag: Buffett

  • Sarbottam Cement Initiates IPO Bidding for Qualified Institutional Investors on NEPSE

    Sarbottam Cement Initiates IPO Bidding for Qualified Institutional Investors on NEPSE


    The initial public offering (IPO) of Sarbottam Cement has initiated the bidding process for Qualified Institutional Investors (QII) at the Nepal Stock Exchange (NEPSE). The bidding unfolded in the presence of NEPSE’s CEO Krishna Bahadur Karki and Sarbottam Cement’s Chairman Bishnu Prasad Neupane. During this phase, the company made its IPO available to eligible institutional investors through the book-building process from Mangsir 6 to Mangsir 10.

    A total of 41 eligible institutional investors participated in this opportunity, applying for 36,19,190 shares against the initial offering of 24,00,000 units. Notably, there are currently 135 Qualified Institutional Investors licensed by the Securities Board of Nepal (SEBON). Key bids at the highest price came from Kumari Capital and two mutual funds under its operation, with bids of Rs. 406 per share, the highest in the bidding process.

    The book-building guidelines allowed a maximum of 20% shares to be bid by a single qualified investor of the total issue size. Several QII, including Sky Touch Investment and Consultant Pvt. Ltd, Alka Investment Pvt. Ltd, Nepal Insurance Company Limited, and City Express Investment Fund Pvt. Ltd, bid for the maximum limit of 4.8 lakh units each.

    Most bids were placed at the cut-off price of Rs. 401, and successful QII applicants will receive a proportionate share based on their applied amount and the available shares at the cut-off price. The allotted shares for successful QII will be subject to a six-month lock-in period from the date of allotment to the general public.

    The cut-off price is set at Rs. 401, and the shares for the general public will be available at Rs. 360.9, reflecting a 10% discount on the cut-off rate. Qualified institutional investors were allowed to apply within a specified price range of Rs. 401 to Rs. 601.50 per share.

    The company’s issued capital stands at Rs. 4.65 Arba, of which 12.9033% (60,00,000 units) will be issued to the public (QIIs and the general public). Out of this, 40% (24,00,000 shares) were allocated to Qualified Institutional Investors.

    An arrangement is in place to determine a cut-off price for fully sold securities to qualified institutional investors, with applicants at or above the cut-off price receiving their share allotments based on demand. Shares will be issued to general investors at a 10 percent discount from the cut-off price.

    The IPO of Sarbottam Cement initially applied through the book-building method on 28th Ashadh 2079, gaining approval 15 months later, marking a pioneering IPO through this method.

  • NEPSE Records Marginal Losses as Sonapur Minerals Leads Turnover

    NEPSE Records Marginal Losses as Sonapur Minerals Leads Turnover


    The Nepal Stock Exchange (NEPSE) Index recorded a decline of 11.27 points, equivalent to 0.59%, compared to the previous day’s closing, settling at 1,896.67 points. In contrast, the day before had seen a notable gain of 47.75 points for the index. The trading session commenced with the index opening at 1909.97 and experiencing an intraday low of 1,889.71, while reaching an intraday high of 1,926.52.

    Throughout the day, a total of 290 different stocks were traded in 52,480 transactions, involving the exchange of 6,017,397 shares. This activity contributed to a cumulative turnover of Rs. 1.75 arba. The market capitalization, based on the float, amounted to Rs. 10.20 Kharba, with the overall market capitalization reaching Rs. 29.24 Kharba.

    Sonapur Minerals And Oil Limited (SONA) led in turnover, concluding the day with the highest turnover of Rs. 7.77 crores at a market price of Rs. 288. The top gainer for the day was Upper Syange Hydropower Limited (USHL), registering a 10% increase.

    Conversely, the most significant loss for the day was reported by Swabhimaan Laghubitta Bittiya Sanstha Limited (SMFBS), with a decline of 8.04%. Notably, all sector indices closed in the red, except for “Hotels And Tourism Index, Investment Index, Mutual Fund, Trading Index.” The “Investment Index” experienced the most gain, registering a 0.49% increase, while the “Life Insurance” sector saw a loss of 0.89%.

  • Kumari Bank Initiates Auction of 91,638 Promoter Shares for Existing Shareholders

    Kumari Bank Initiates Auction of 91,638 Promoter Shares for Existing Shareholders


    The current promoter of Kumari Bank Limited (KBL) has initiated the auction of 91,638 units of shares, inviting interest from existing promoter shareholders starting today. Lila Bahadur Gurung aims to sell this block of promoter shares to fellow existing promoters, and interested parties are encouraged to participate in the auction within the next 35 days from the publication date of this notice, ending on the 10th of Mangsir.

    Potential bidders are required to submit their bids either at the central office of the bank situated in Tangal, Kathmandu, or at Kumari Capital Limited located in Naxal, Nagpokhari, Kathmandu. In the event that no bids are received from the existing founder shareholders within the specified timeframe, the shares will subsequently be opened for auction to the general public.

    As of the latest available data, Kumari Bank Limited (KBL) concluded trading at a price of Rs. 153.90 on the previous day. Additionally, the Last Traded Price (LTP) for Kumari Bank Limited Promoter Share (KBLPO) stood at Rs. 110.00 as of November 9, 2023.

  • Gold Price Rises by Rs. 600 per Tola, Silver also Witnesses Increase in Nepal’s Market

    Gold Price Rises by Rs. 600 per Tola, Silver also Witnesses Increase in Nepal’s Market


    The price of the precious metal gold has experienced an increase of Rs. 600 per tola compared to the trading price on Friday. As reported by the Federation of Nepal Gold and Silver Dealers’ Association (FENEGOSIDA) today, fine gold is valued at Rs. 1,16,900 per tola, while tejabi gold is priced at Rs. 116,350.

    In contrast, on Friday, the price of fine gold was Rs. 1,16,300 per tola, and tejabi gold stood at Rs. 1,15,750.

    In tandem with the trend in gold prices, the price of silver has also seen an upswing today. Reflecting a gain of Rs. 35, the current price of silver stands at Rs. 1,485 per tola. In comparison, Friday recorded a silver price of Rs. 1,450 per tola.

    In the international market, the current rate of gold is USD $2,002.70, while silver is being traded at $24.32 per ounce.

  • Government Utilizes 10.2% of Development Capital Amidst Sluggish Revenue Collection

    Government Utilizes 10.2% of Development Capital Amidst Sluggish Revenue Collection


    As the current fiscal year reaches its midway point with four and a half months passed, the government’s utilization of its development capital remains relatively modest at 10.2%. According to the Financial Comptroller General Office, the government has disbursed Rs 30.27 arba for the ongoing fiscal year, with an additional Rs 3.20 kharba allocated for previous expenditures.

    In the initial four and a half months of the fiscal year, the total government expenditure has reached 20.75%, totaling Rs 3.63 kharba. A noteworthy aspect is that 24.4% of this expenditure has been directed towards current expenses, covering salaries, allowances, and administrative costs for employees.

    Simultaneously, the government’s revenue collection has demonstrated sluggish performance, achieving only 20.66% of the targeted revenue during this period. The detailed breakdown indicates that 20.77% is derived from tax income, while non-tax income contributes 19.49%.

    The government’s revenue collection goal for the current financial year is set at Rs. 14.22 kharba. However, the current figure stands at Rs. 3.12 kharba, resulting in the government’s expenditures surpassing its income by Rs 50.61 arba.

  • US Dollar Reaches Record High Against Nepali Rupee, Impacting Imports and State Loans

    US Dollar Reaches Record High Against Nepali Rupee, Impacting Imports and State Loans


    The US dollar has recently attained its highest value against the Nepali rupee, reaching a new record of Rs. 133.68 last Wednesday and continuing to rise. The latest statistics from Nepal Rastra Bank on this Sunday indicate a slight increase, with the current rate standing at Rs. 133.70, marking a 2-paisa uptick from the previous record. In practical terms, this means that 1 US dollar now requires 133 rupees and 70 paisa for exchange.

    The depreciation of the Indian rupee in comparison to the US dollar has played a role in the weakening of the Nepali rupee. Given that Nepal maintains a fixed exchange rate with India, any fluctuations in the Indian currency have a direct impact on the Nepalese rupee.

    The surge in the dollar’s value carries consequences, particularly making imports more expensive. As transactions for imports are conducted in dollars, a stronger dollar translates to higher expenditure. Furthermore, the appreciation of the dollar is expected to increase the burden of state loans from foreign donor agencies.

    While a robust dollar may have advantages for sectors such as tourism, exporters, and remittance recipients, experts argue that the disadvantages are more significant due to the substantial share of imports in the Nepali economy.

  • NEPSE Index Surges 2.56%, Marks Highest Level in 1.5 Months with Robust Turnover

    NEPSE Index Surges 2.56%, Marks Highest Level in 1.5 Months with Robust Turnover


    The Nepal Stock Exchange (NEPSE) Index demonstrated a substantial gain of 47.75 points, equivalent to 2.56%, compared to the previous day’s closing, reaching a closing figure of 1,907.95 points. The preceding trading day had already seen a gain of 9.87 points for the index. Notably, this marks the highest index level recorded by NEPSE in the last 1.5 months.

    Commencing trading at 1859.24, the index experienced an intraday low of 1,852.67 and reached an intraday high of 1,908.19. The trading session witnessed active participation, with 294 different stocks being traded in 66,516 transactions. The total turnover for the day amounted to Rs. 2.01 arba, involving the trading of 6,530,643 shares. The market exhibited a float market capitalization of Rs. 10.26 Kharba, leading to an overall market capitalization of Rs. 29.41 Kharba. This turnover figure represents the highest recorded in the last two months.

    Sonapur Minerals And Oil Limited (SONA) led the day in terms of turnover, closing at a market price of Rs. 293.30 with a turnover of Rs. 11.66 crores.

    The day’s highest gainers included Chhyangdi Hydropower Ltd. (CHL) and Bhagawati Hydropower Development Company Limited (BGWT), both recording a significant increase of 10%. Vijaya Laghubitta Bittiya Sanstha Ltd. (VLBS) closely followed with a gain of 9.99%. Conversely, Infinity Laghubitta Bittiya Sanstha Limited (ILBS) and NMB Sulav Investment Fund – 2 (NSIF2) experienced the day’s biggest losses, both declining by 2.47%.

    Remarkably, all sector indexes closed in positive territory, with “Life Insurance” leading the gains at 4.44%, while “Mutual Fund” recorded the least gain at 1.41%.

  • Nepal’s Government Records Revenue of Rs. 84.75 Billion from Alcohol and Cigarette Sales in the Past Fiscal Year

    Nepal’s Government Records Revenue of Rs. 84.75 Billion from Alcohol and Cigarette Sales in the Past Fiscal Year


    During the last fiscal year, the Internal Revenue Department (IRD) of Nepal reported that the government accrued a total revenue of Rs. 84.75 Billion from the sales of alcohol and cigarettes. This revenue distribution comprises Rs. 26.22 Billion from cigarettes, Rs. 25.92 Billion from alcohol, and Rs. 32.61 Billion from beer.

    The source of this revenue lies in the imposition of excise duty on cigarettes and alcohol at customs points. In the preceding year, the revenue figures for cigarettes, alcohol, and beer were Rs. 24.56 Billion, Rs. 30.41 Billion, and Rs. 31 Billion, respectively.

    The excise duty on alcohol is determined by its alcohol content strength, ranging from Rs. 1,250 to Rs. 2,120 per liter. As for unfiltered cigarettes, the excise duty is set at Rs. 730, whereas for filtered cigarettes, it varies between Rs. 1690 and Rs. 4080.

  • Unnati Sahakarya Laghubitta FPO Allotment Concluded, Oversubscribed by Over 65 Times

    Unnati Sahakarya Laghubitta FPO Allotment Concluded, Oversubscribed by Over 65 Times


    The FPO allotment process of Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB) was successfully concluded today at the offices of the issue manager, Siddhartha Capital Limited, in Kathmandu.

    During the FPO issuance from 21st to 24th Kartik, 2080, Unnati Sahakarya Laghubitta Bittiya Sanstha Limited (USLB) had released 1,78,451.18 units of FPO shares at a par value of Rs 100 to the general public. As per the regulations outlined in the Banks and Financial Institutions Act (BAFIA), 2073, and guidelines from the NRB, a minimum of 30% of the issued capital must be retained by public shareholders. To meet this requirement, the company made available 1,78,451.18 units of FPO shares to the general public, altering the existing promoter: public share structure from 75.45:24.55 to a new ratio of 70:30. The company’s current paid-up capital is Rs. 22.9 Crores.

    The FPO garnered significant interest, receiving applications from 10,72,443 valid applicants who collectively applied for 1,17,20,860 units. The oversubscription reached an impressive rate of more than 65.68 times. In the allotment process, 17,845 applicants were fortunate to receive 10 units each through a lottery system, while one lucky applicant received an extra unit. Unfortunately, the remaining 10,54,598 applicants did not receive any allotment. A total of 325 applicants, who had applied for 3,580 units, were disqualified.

    For accessing the IPO result, interested parties can refer to CDSC IPO Result, MeroShare, and Siddhartha Capital Limited. However, it’s noteworthy that ICRA Nepal has downgraded the issuer rating of Unnati Sahakarya Laghubitta Bittiya Sanstha Limited from [ICRANP-IR] BB- to [ICRANP-IR] B+@, placing the rating on watch with negative implications. This rating implies a high risk of default concerning the timely servicing of financial obligations for issuers with this rating.

  • Kumari Bank Limited Promoters Auction 5,392 Shares to the Public

    Kumari Bank Limited Promoters Auction 5,392 Shares to the Public


    The current promoter of Kumari Bank Limited (KBL) has initiated the auctioning of 5,392 units of shares to the general public starting today. Lok Maya Gurung and Tika Ram Sapkota, existing promoters of the bank, are respectively selling 2,305 units and 3,087 units of their promoter shares to interested individuals. Prospective buyers are invited to participate in the auction within a 35-day period from the date of this notice, concluding on 8th Mangsir.

    To submit their bids, shareholders are required to visit the central office of Kumari Bank located in Naxal, Kathmandu. Notably, since no bids were received from the existing founder shareholders within the stipulated timeframe, these shares are now available for auction to the general public.

    As of 23rd November 2023, Kumari Bank Limited (KBL) closed at Rs. 153.90. Additionally, Kumari Bank Limited Promoter Share (KBLPO) had a Last Traded Price (LTP) of Rs. 110.00 as of 9th November 2023.

  • Nepal’s Internal Revenue Collection Costs Rise to 3.38 Paisa per 1000 Rupees in FY 2079/80

    Nepal’s Internal Revenue Collection Costs Rise to 3.38 Paisa per 1000 Rupees in FY 2079/80


    In the fiscal year 2079/80, the Nepalese government conducted a cost analysis, revealing that it incurred a cost of 3.38 paisa to collect 1000 rupees of internal revenue. This analysis was conducted by the Internal Revenue Department (IRD), which reported a total revenue of Rs 4.79 kharba for the year. The departments and subordinate offices associated with revenue collection spent Rs 1.41 arba on current and capital expenditures. Consequently, the cost of tax collection per thousand rupees for the fiscal year amounted to Rs 3.38. This figure marked an increase from the previous year’s 2.23 paisa. The rise is attributed to the department falling short of its revenue target in the preceding year, achieving only 76.58% of the set goal of Rs 6.26 Kharba.

    The overall growth rate of revenue collection for the year was negative by over 10%, primarily influenced by reduced imports and economic relaxation. This decrease in revenue collection exerted pressure on the government’s resource management. Although the target for the fiscal year was set at Rs 14.3 kharba, only Rs 10.10 kharba was collected, representing 72% of the total target.

    The Internal Revenue Department underscores that recent technological advancements in the tax system have contributed to a decrease in the cost per thousand. Additionally, the department asserts that administrative improvements, adherence to expenditure frugality standards, and increased taxpayer participation have all played pivotal roles in reducing costs.

  • NEPSE Weekly Review: Market Trends, Technical Analysis, and Key Insights

    NEPSE Weekly Review: Market Trends, Technical Analysis, and Key Insights


     

    This week, the NEPSE index concluded at 1,860.20, marking an increase of 8.12 points (0.44%) from the previous week’s closing at 1,850.08. The index exhibited a range between 1,816.68 and 1,872.64, indicating a weekly volatility of 55.96 points, slightly higher than the 50.98 points observed in the preceding week. The most significant intraday loss, amounting to 20.68 points, occurred on Wednesday, accompanying a turnover of Rs 1.08 Arba. However, the overall weekly turnover amounted to Rs 4.48 Arba.

    Momentum Indicators:
    The Relative Strength Index (RSI) recorded 43.84 on the daily timeframe and 40.47 on the weekly chart. Meanwhile, the Moving Average Convergence Divergence (MACD) indicators are in the negative zone, with the signal line crossing the MACD line. The MACD reading stands at -25.53.

    The Nepse Index currently resides below both its 5-day and 20-day Moving Averages, signaling a bearish trend that requires further confirmation. Key support is identified in the 1,807 – 1,837 zone, while resistance is anticipated in the 1,925 – 1,945 zone.

    Part 2: Analysis of Key Data

    The week witnessed the highest intraday loss of 23.82 points on Tuesday, accompanying a turnover of Rs 95.04 Crores. The total weekly turnover amounted to Rs. 4.48 Arba, with over 1.56 crore unit shares traded through 1,74,410 transactions. NEPSE’s current market capitalization is Rs. 2,868,120.36 million, equivalent to Rs 2.86 Kharba.

    Performance of NEPSE Index and Sub-indices:
    The NEPSE index experienced a 0.44% decline this week, with only four sector indices closing in the red.

    Stocks with the Highest Monthly Beta:
    Peoples Hydropower Company Limited (PHCL), Ingwa Hydropower Ltd (IHL), and Buddha Bhumi Nepal Hydropower Company Limited (BNHC) are the top three companies with the highest beta, recording 3.087, 2.571, and 2.412, respectively.

    Top Ten Gainers and Losers of the Week:
    Three Star Hydropower Limited (TSHL) emerged as the top gainer, closing at Rs. 381.10 with a notable increment of Rs. 72.40 (23.45%). Prime Commercial Bank Limited Promoter Share (PCBLP) experienced the most significant decline, with its price decreasing by 15.34%, closing at Rs. 122.

    Top Stocks by Turnover, Volume, and Transactions:
    Sonapur Minerals and Oil Limited (SONA) claimed the top position as the most traded company of the week, with shares worth Rs. 30.62 Crores exchanged.

    Top Buyers and Sellers:
    Naasa Securities Pvt. Ltd (Broker No- 58) was the leading buyer broker, investing Rs. 21.14 Crores. Imperial Securities Company Pvt. Ltd. (Broker No- 45) emerged as the top seller broker, selling stocks worth Rs. 31.43 Crores.

    Top 10 Bought and Sold Companies:
    The analysis has been conducted using the SS Pro Software, providing a comprehensive overview of market trends and activities. For more information about the software, refer to the provided link.