NTC share priced at Rs 536 to Rs 893

The shares of much-awaited Nepal Telecom (NT) is going to be traded in between Rs 536 and Rs 893 from next week at the sole secondary market, Nepal Stock Exchange (Nepse). After the signing ceremony between NT and Nepse here today, Rewat Bahadur Karki, general manager and chief executive officer (CEO) of the Nepse, said, "Though its against the free market practice to fix price of any company's share, the Nepse has fixed the minimum and maximum price of NT's shares to protect the investors from being fooled by manipulators." The minimum price could be three times the net worth and maximum price could be five times the net worth, said Karki, adding that the present networth of the company is Rs 178.63.

After the first day's transaction, the price could increase or decrease by 10 per cent in a day. If it crosses the 10 per cent limit upward or downward, Nepse will impose circuit breaker to the transaction of such company's shares trading, according to the Nepse's rule.

Nandan Hari Sharma, executive director of Citizen Investment Trust (CIT), the issue and sales manager of NT shares, said, "This is the largest ever share listing worth Rs 15 billion after Butwal Power Company (BPC) that had listed its 84,00,000-unit shares worth Rs 840 million." After the listing of NT shares, the financial institution dominated capital market will be diversified, apart from giving option to the investors, he added. Rupak Halder, managing director of the NT and Rewat Bahadur Karki, GM and CEO of the Nepse signed the agreement on behalf of their respective companies here today.

Nepal Telecom is the 143 company to be listed at the Nepse. According to the agreement, 150 million unit shares worth Rs 15 billion has been listed as ordinary shares at the Nepse. Now it could be traded after a week.

NT has according to the finance ministry's divestment plan, floated 75,00,000-unit of shares — that is five per cent of the total — in the first phase. But due to various reasons, it was under-subscribed to only above 53,00,000-unit shares. "The decision to float the remaining units of shares and second phase of five per cent is solely of government," Halder said, adding that the NT cannot decide on its own as the shares belong to the government.

After the listing of NT shares, the number of share at the secondary market has increased by 45 per cent to 482.1 million-unit shares and paid up capital has increased by 49 per cent to Rs 45.56 billion. Similarly, market capitalisation has also increased by 25 per cent from the present four trillion to the 60 per cent of Gross Domestic Product (GDP).
Source: The Himalayan Times