I have a bit of a financial situation and could use some guidance. So, my father purchased IPO shares of Prime Bank a while back, and now I’m considering selling them. However, I have a question regarding the bonus shares we received and the potential tax implications. Can anyone shed some light on this?
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Prime Commercial Bank Limited (PCBL) has announced the commencement of an auction where the existing promoters of the bank will be selling 351,817 units of promoter shares to the general public. The auction will take place from 3rd Jestha to 17th Jestha, 2080.
The auction is open to individual investors, companies, and institutions who are eligible to bid for the promoter shares. The minimum bid rate for the shares has been set at Rs. 130, and the minimum bid quantity is 10,000 units. It is important to note that while bidders have the option to bid for the entire quantity of shares, they must comply with the regulations set by the Nepal Rastra Bank, ensuring that the specified quantity of shares per entity is not exceeded.
The auction will be managed by Sanima Capital Limited, serving as the auction manager. Bids will open at the premises of the auction manager on the 17th of Jestha, 2080, at 4 PM.
At the time of writing, PCBL’s last traded price (LTP) stands at Rs. 191. This auction presents an opportunity for interested investors to acquire promoter shares of PCBL and participate in the growth of the bank.
The NEPSE Index, the stock market index of Nepal, concluded the week at a level of 1,838.59, representing a loss of 31.14 points or 1.67%. This decrease follows a similar 1.67% decline from the previous week when the index closed at 1,869.73.
Throughout the week, the index displayed volatility, with a high of 1,872.22 and a low of 1,825.83. This indicates a range of 37.68 points, which is slightly lower than the 46.39 points of volatility observed in the previous week.
Analyzing the trend data on daily charts, it is evident that both the short-term and mid-term trends are downward. Each day, the index has been making lower lows, indicating a bearish market sentiment prevailing in the market.
On Tuesday, there was a notable intraday gain of 10.67 points, accompanied by a turnover of Rs 0.77 Arba. However, the total turnover for the week amounted to Rs 3.25 Arba, indicating moderate trading activity.
Overall, the NEPSE Index experienced a downward trend during the week, characterized by volatility and declining values. Investors witnessed a bearish market sentiment with the index consistently making lower lows.
This week’s NEPSE index finished at 1,889.76, a decrease of 14.64 points (0.77%). Last week, the index finished at 1,893.33, down 1.55% from the previous week.
This week, the index reached a high of 1,913.05 and a low of 1875.37, resulting in a volatility of 37.68 points. The prior week’s volatility on the index was 51.52 points.
Prime Life Insurance Company Limited (PLIC) unit promoter shares have been converted to ordinary shares, bringing the company’s promoter-to-public share ratio to 51: 49.
The company currently has 3,14,09,657 unit shares listed on NEPSE.Similarly, the shareholding structure of 60% promoters and 40% public has been altered to 51% promoter shares and 49% public shares.
On the 10th of Chaitra 2078, the Nepal Insurance Authority directed that life insurance businesses have a minimum paid-up capital of Rs. 5 Arba. The Insurance Board also encouraged non-life insurance companies to increase their paid-up capital to Rs. 2.5 Arba by the end of Chaitra 2079.
This week’s NEPSE index finished at 1,904.40, a loss of 30.07 points (1.55%). Last week, the index finished at 1,934.47, up 3.63% from the previous week.
This week, the index reached a high of 1,944.58 and a low of 1893.33, resulting in a 51.25 point volatility. The prior week’s volatility on the index was 148.11 points.
The largest intraday loss was 23.63 points on Monday with a transaction of Rs 0.92 Arba, however the overall turnover for the week was Rs 4.62 Arba.
The existing promoters of Prime Commercial Bank Limited are auctioning off 9,00,000 units of promoter shares to the general public from the 21st Chaitra to the 29th Chaitra, 2079.
A total of 9,00,000 promoter shares will be auctioned off. Individual investors, businesses, and institutions can all bid in an auction. The minimum bid is Rs. 130. The promoters’ shares have a minimum bid quantity of 1000 units. Although bidders may bid for the entire issue, they must follow the Nepal Rastra Bank’s rule of not exceeding the specified number of shares per entity.
Prime Life Insurance Company Limited (PLIC) has announced a change in its promoter to public shareholding ratio.
On the 24th Poush, 2079, the company held its 15th AGM. The AGM approved the board’s proposal to change the promoter/public share ratio of the company from 60:40 to 51:49. The company has now informed that if any of the shareholders are unwilling to convert their ownership of the founder shares into a public group, they should make a self-declaration to the company’s corporate office in Hattisar, Kathmandu, within 7 days of the date of publication of this notice.
Gurans Laghubitta Bittiya Sanstha Limited (GLBSL) has listed 39,000 Units Bonus Shares on NEPSE.
The board of directors decided to distribute the dividend from the paid-up capital of Rs. 9.75 crores at its 117th meeting on Mangsir 27. The company proposed and distributed a 4% bonus share and a 0.210526% cash dividend. As a result, the bonus shares are worth Rs. 39 lakhs, and the cash dividend is slightly more than Rs. 2.05 lakhs. NEPSE has listed the same bonus dividend.
Prime Life Insurance Company Limited (PLIC) has listed 36,13,500.25 Units Bonus Shares on NEPSE.
For the fiscal year 2077/78, the board of directors proposed bonus shares worth Rs. 36,13,500.25 and a cash dividend worth Rs. 1,90,18,422 from the paid-up capital of Rs. 2.77 Arba at its 162nd meeting. NEPSE now lists the same bonus shares.
A final merger agreement has also been completed between three life insurance companies, Union Life Insurance Co Ltd (ULI), Gurans Life Insurance Co Ltd (GLICL), and Prime Life Insurance Co Ltd (PLIC). The merger agreement was signed by the companies in order to strengthen the company’s capital base at a swap ratio of 1:1:1.
According to Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel, indicators of the country’s economy are in jeopardy due to negative global economic impacts and challenges stemming from domestic causes.
He did, however, state that he is constantly working to resolve the country’s economic problems. He made this statement during today’s House of Representatives meeting while delivering a speech on the half-yearly budget report for fiscal year 2022/23
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