NTC's share enlistment decision made

After a lengthy linger, the shares of Nepal Telecommunication Corporation is going to get listed in the Nepal Stock Exchange. NTC gave the application for the enlistment to the stock exchange, a week ago. Generally, after receiving an enlistment application, stock exchange gives the permission within a month but the NTC's shares seem to be getting some privileges. According to the exchange, NTC's completed all the required procedures during application submission and also because of acute interest of general public in the share of the company, the enlistment process was carried out in haste.

According to Rewat Bahadur karki, Managing Director of the exchange, an agreement regarding the trading procedure in the secondary market with NTC is still on its way. The agreement signature program is scheduled for 13th august, 2008, Wednesday. The general practice is that, once the agreement notice is published, the trading takes place after 8 days.

It is yet to be decided at what price the shares will be listed. Stock Exchange has decided to fix the first day price at three to five times more than the company's audited net worth. The trading after that will be carried out in a normal way. As acknowledged, 10% up or down in share price as compared to the previous day's price will halt the trade of the concerned company for the day. Telecom's share was issued six months back and the share certificate distribution was elongated for a long time. Altogether, 27000 general public invested on this share worth Rs. 3.62 billion. NTC issued only 5% share in the first lot. All in all, 8200000 shares are on their way to enlistment in the exchange. The shares of NTC were decided to be sold at Rs. 600, but some investors even paid Rs. 2500 for a single share. However, employees of the company paid Rs. 90 for a share.
Source: Jamb News Service