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Shikhar Bittiya Sanstha Ltd. is issuing 200000 shares as Initial Public Offering (IPO)at the rate of Rs. 100 per share (10000 shares for the employees fall in it). An individaual can apply minimum 5o share to maximum 75000 shares. The IPO issuance will commence from 22nd June, 2008 (2065 Ashad 8). Applications can be dropped on 26th June, 2008(2065 Ashad 12) at fast and 27th July, 2008 (2065 Shrawan 12) at late.
Source: Jamb News Service
Bank of Asia Nepal (BoAN) has opened its third branch at Jawalakhel in Lalitpur. Trilok Chandra Agrawal, the chairman of the bank inaugurated the new branch on Friday. The bank has also launched a new saving scheme ‘Sambridi Bachat Khata’ on the occasion, states a press release. BoAN claims that it earned Rs 38 million operating and Rs 13 million net profits in a short span of its operations.
Source: The Himalayan Times
Everest Bank Ltd (EBL) has opened its 26th branch at Bhaktapur on Friday: Indian ambassador Rakash Sood, NRB governer K B Manandhar were present on the occassion of opening of the branch that was inaugurated by chairman and MD of Punjab National Bank, India, Dr K C Chakrabarty. The bank has 11 ATM counters and has expansion plans to many more locations, stated a press release. EBL debit card also has access to 125 ATMs in Nepal and more than 1500 ATM locations in India where EBL customers going to India need not carry cash but simply use their debit cards.
Source: The Himalayan Times
Sanima Bikas Bank Ltd (Sanima) has introduced yet another customised deposit product ‘Sanima Muna Bachat Khata’ targeted to minor children. The account can be opened at an initial deposit of Rs 500, states a press release. The account offers six per cent interest rate per annum on monthly minimum balance, whereas it also offers free SMS banking service, account statement, cheque Book issue and 25 per cent discount on draft issuance for ac count holder and/or parents.
Source: The Himalayan Times
Butwal Power Com pany (BPC) adopted United Nations Environment Programme slogan ‘Kick the Co2 habit! Towards a low carbon economy’ from the World Environment Day. “The company supports UNEP’s focus on reduction of greenhouse emissions,” states a press release. BPC has earlier, been awarded the Blue Planet Award 2005 by International Hydropower Association in association with UNESCO, recognising its activities in environment conservation. It has a new blue and orange logo signifying the tranquil sky reflected in the Himalayan wa ters, and energy and power.
Source: The Himalayan Times
The whereabout of more than three dozen companies worth around Rs 1 billion is unknown to their shareholders.
“38 companies — including once very popular and highly valued Necon Air that had its shares traded at Rs 700 per unit then — have been delisted from the Nepse,” according to Nepse.
The total amount of delisted shares worth around Rs 963.2 million. But the shareholders find themselves at the deadend once the company is delisted. There is no authority that looks after the interest of the shareholders. Who will pay back their money and how will it be paid, nobody knows.
Securities Board of Nepal (Sebon), the regulatory authority of capital market, had earlier started the search for these companies and their promoters. “We are trying to locate the companies and their promoters of such companies,” said Dr Chiranjivi Nepal, chairman of Sebon. Some promoters have now become the promoters of other companies.
Nepal Stock Exchange (Nepse) has started Overthe-Counter trading from Wednesday to give a chance to the shareholders to sell or buy the shares of these companies. “However, who is going to buy the shares of such companies that have no existence,” asked one investor. “Except Nepal Bank Ltd (NBL), nobody knows whereabouts of these companies,” he added.
Nepse had delisted Nepal Bank Ltd’s 3802846-unit of shares with face value Rs 100 per unit. But Nepal Rastra Bank, the central bank, has citing ongoing Economic Sector Reform Programme, has requested Nepse not to start its trading at present.
From a company that has Rs 10 per unit face value like Nepal Metal Co to companies with their per unit share value Rs 100 like Necon Air, Bansbari Leather Factory and Nepal Med Ltd, a total of more than three dozen are nowhere in sight.
The shareholders have no idea where have al these companies and their promoters gone. Most of the delisted companies, except Nepal bank Ltd, have already been closed.
According to the Stock Exchange Regulation-2002 the companies, which do not respond within 15 days of the decision of delisting to the Nepse are automatically delisted. For the first time Nepse delisted 26 companies on July 16, 2002 and for the second time on March 6, 2007, it delisted 12 companies.
After the Sebon’s approval the OTC Market Regulation has come into effect but will it be operational is a million dollar question.
One does not have to go to brokers to trade in OTC market. The buyer and seller can directly go to Nepse and trade paying the commission that is two per cent upto Rs 25,000 transaction, from Rs 25,000 to Rs 50,000, it is 1.5 per cent and Rs 50,000 over transaction will attract one percent.
Source: The Himalayan Times
Everest Bank Ltd (EBL), a joint-venture with Punjab National Bank (PNB), reported an impressive rise of 52 percent in its net profits in the first nine months of the current fiscal year.
It earned a net profit of Rs 299.40 million during the period, the bank stated in a statement in a press conference Thursday. The bank said it recorded a rise of 31 percent in deposits to Rs 22.47 billion, and 33.5 percent in credit to Rs 17.28 billion.
The bank, meanwhile, is going to open a branch in Bhaktapur on Friday, the 26th branch of the bank in the country. The bank is also in the process of opening branches in Tulsipur, Besisahar, Kirtipur and Golfutar, states the statement.
Dr KC Chakrabarty, chairman and managing director of PNB, said the PNB has a vast experiencing in syndicating assignments in various sectors including power. “PNB has a wide expertise in mergers and acquisitions,” he said, pointing to possible necessity of Nepali banks to undertake mergers and acquisitions. BK Shrestha, chairman of the EBL, said the bank would continue introducing innovative products and services just as it had introduced retail lending for the first time in Nepal.
Source: eKantipur
Everest Insurance Company held its 13th annual general meeting on Thursday. Issuing a press statement, the company announced that it earned a profit of Rs 22 million in the last fiscal year, which was a rise of more than 11 percent over that recorded in the preceding fiscal year. The company had mobilized a premium income of Rs 248.68 million during the last fiscal year. Moreover, the company stated that it earned a premium income of Rs 262 million during the first nine months of the current fiscal year. The release adds that the company has decided to issue bonus shares in the ratio of 9:1. The company has raised its paid up capital to Rs 100 million.
Source: eKantipur
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Kush Kumar Joshi Thursday urged US Ambassador to Nepal Nancy J Powell to take initiatives to increase US investment in Nepal. An FNCCI statement said that Joshi sought Powell's co-operation to attract US investment in sectors like agriculture, hydro-power, tourism and Information Technology. A delegation led by Joshi also asked that the US extend the duty free access enjoyed by Sub-Saharan countries' garment exporters to Nepali garment exporters. According to the statement, Powell informed about new programs for the development of the Nepali agriculture sectors to be implemented under US assistance.
Source: eKantipur
Government is sorting out the co-operative organizations on the basis of the income they generate, and is about to impose tax accordingly. Co-operatives have been asking the tax discount for a long time. Narayan Prasad Pidari - the deputy registrar of the co-operative division, said "from the next fiscal year, the co-operatives are being classified on account of their income, and low tax is imposed to low income generating companies". He added," Looking at the deposit collection, loan distribution and income, the classifications will be made by the government. Furthermore, the companies with minimal profit might enjoy the facility of total exemption or discount in tax. However, the companies with high profit would not get access to such benefits". More than 10000 co-operatives are in operation at the moment and 21% tax is levied on them.
Source:Jamb News Service
Sunrise Bank Ltd. has opened its fifth branch at Tinkune in Kathmandu. Bir Bikram Rayamajhi, deputy governor, Nepal Rastra Bank, inaugurated the new branch on Wednesday. This branch will provide its service from 8 O'clock in the morning till 8 O'clock in the evening. The bank has already opened its branches in Dharan, Beshisahar, and Damauli.
Source: Jamb News Service
Rajendra Khetan, chairman of Khetan Group, inaugurated Prime Life Insurance Co Ltd (PLIC) that has commenced its business from Wednesday. It plans to introduce innovative products and provide best customer services through the use of world class technology, claims the company press release. PLIC is promoted by renowned industrial and business groups and Laxmi Bank Ltd.
Source:The Himalayan Times
Comen has introduced three new metals — silver, copper and zinc — to be traded, that provide investment, hedging and arbitration opportunities for its traders. Silver, copper and zinc — extensively used for household utensils, wiring and jewellery — will boost future market demand benefiting producers, investors and traders, states a press release. "Currently demand for zinc in Nepal is huge, which is a definite scope that will provide transparency to markets," it adds. Comen, established in 2006, is the first and only commodities and metal exchange in Nepal. Commodity and metal are considered ideal tools for economic progression. An exchange is an institution that hosts a market where stocks, bon-ds, options and futures, and commodities are traded. Comen has also entered into a strategic alliance with Jamb technologies to initiate derivative training to its brokers and investors and enhance their skills. It conducts various training and educational programs related to derivative market to make the market more vibrant. "Comen, with the objective of bringing the act of Public warehouse system, also aims at fostering the flow of international investment, promoting sustainable growth of capital market and generating employment," claims the release. With the advantages of price discovery of both cash and futures, creating savings and investments in the long run, developing intellectual capital awareness and representing broad based economic indicators. It has also first started its trading in gold futures with a minimum spread, states a press release. "Comen maintains a maximum volume in a day transaction in Futures gold contract of 1kg, 500gms and 100gms respectively.
Source:The Himalayan Times
Government is sorting out the co-operative organizations on the basis of the income they generate, and is about to impose tax accordingly. Co-operatives have been asking the tax discount for a long time. Narayan Prasad Pidari - the deputy registrar of the co-operative division, said "from the next fiscal year, the co-operatives are being classified on account of their income, and low tax is imposed to low income generating companies". He added," Looking at the deposit collection, loan distribution and income, the classifications will be made by the government. Furthermore, the companies with minimal profit might enjoy the facility of total exemption or discount in tax. However, the companies with high profit would not get access to such benefits". More than 10000 co-operatives are in operation at the moment and 21% tax is levied on them.
Among the five amalgamating companies (Siddhartha Finance Limited, Birgunj Finance Ltd, Butwal Finance Ltd, Himchuli Bikash Bank Ltd and Maha Laxmi Finance Ltd.), three are about to issue right shares to increase their capital. Special meeting of these companies held on 30th June, 2008 decide on this matter. Siddhartha Finance Limited is giving 1:5 right share followed by Butwal Finance Ltd and Maha Laxmi Finance Ltd. Butwal finance is about to issue 1:4.75 right shares while Maha Laxmi is offering 1:4 in the near future. The company has decided upon this agenda so as to increase the share capital to 40 million. Within 7 months, the company is completing all the necessary procedures and capital collections as well. Along with these three organizations, Himchuli Bikash Bank Ltd and Birgunj Finance Ltd are joining hands to form a commercial bankn with 2 billion share capital.
Shree Investment Finance Co. Ltd. (Bittiya sanstha) is issuing 4:1 right share from 23rd June, 2008 to 27th July, 2008 (2065 Ashad 9 to 2065 Shrawan 12). It is having its book closure on 10th June, 2008 (2065 Jestha 28) for the same purpose. The shareholders upto 10th June, 2008 are only eligible to get the right share. The company is issuing 168000 right shares at the rate of Rs. 100 per share. SIFC was incorporated in the year 1994 (2051 BS) by a group of eminent businessmen from Kathmandu , as a Financial Services Company and a Merchant Bank under the Nepal Finance Company Act, 1985 and the Nepal Company Act, 1964.
Sahayogi Vikash Bank Ltd. is issuing 2:1 right share from 17 June, 2008 to 21 July, 2008 (2065 Ashad 3rd to 2065 Shrawan 6th) for the shareholders upto 4 June, 2008 (2065 Jestha 22). The company is having its book closure on 5 June, 2008 (2065 Jestha 23) for the same purpose. It is issuing 100000 right shares at the rate of Rs. 100 per share.
A well-structured attempt by two big insurance companies to use insurance premium of common policyholders for technical expenses was blocked after Insurance Board (IB) intervened, citing the plan as being 'against basic insurance norms'.
Knowledgeable sources informed that American Life Insurance Company (Alico) and Life Insurance Corporation (Nepal) recently requested IB to allow them pay 5 percent of their premium earnings to the head office and the Indian JV partner respectively for technical supports that they receive.
Alico in Nepal is associated with American Insurers Group (AIG) and LIC (N) is a joint venture of LIC of India.
As per Insurance Regulations, companies cannot use premium earnings for such expenses, as it is a saving of policy holders and need be returned along with agreed volume once mutually agreed scheme expires.
"Licensing conditions of the IB and companies' prospectus do not offer them any concessions on the matter," said Madhav Prasad Upadhyaya, Chairman of the IB. He said that such a proposal of the companies was against basic insurance practices as well.
Office bearers of both insurance companies could not be reached for comment.
Sources said that Alico sought IB's approval for paying 5 percent of gross premium earning - premium collected from clients - to its head office every year under the Technical Service Agreement it wished to sign with its parent company in future.
LIC (N), on the other hand, proposed that it would transfer 5 percent of first premium earnings to LIC of India as payment for acquiring technical services. If their proposal was endorsed, the two companies would have repatriated over Rs 40 million worth of clients' savings every year, according to the latest IB data.
Data shows that the annual premium earning of Alico was Rs 648.20 million in 2004/05 and its annual growth was about 30 percent. Likewise, LIC (N)'s premium earning was over Rs 399 million, of which about 25 percent was the first premium earning during 2004/05.
"Endorsing the proposal would mean exposing public savings to extreme risks," said Upadhyaya.
Citing that international standard limits the total administrative and technical costs for any insurance company to less than 2.5 percent of premium earning, Upadhyaya said that the board of IB decided to intervene on the matter recently.
He said that the board of the IB has arbitrated Alico not to lay hands on premium earnings or any other fund, if it is entering into a TSA with head office.
"Providing technical assistance to a branch office is a basic responsibility of head office. If it was outsourcing the services, then it would have been a different case," said a member of the IB board.
As for LIC (N), the IB has decided to ask it not to tie up TSA with premium. The board has asked the company to make payment as and when services are procured and not to fix the payment on annual rate.
-Milan Mani Sharma
Source: eKantipur
