Prabhu Finance: Book Closure

Prabhu Finance Company ltd. is having its book closure from 4th June 2009 (2066 jestha 21 ) for the purpose of issuing 2:1 right share.
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Right Share Issue: LFLC

Lumbini Finance Ltd.is issuing 2:1 right share from , 14 june 2009-19 july-09 (2066 Jestha 31 to 2066 Sharwan 4).
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Prime Bank's IPO crosses Rs 7bn

Prime Commercial Bank has received applications worth over Rs 7 billion for its primary issue that closed today.

"Our collection exceeded our expectations of Rs 4 million and crossed Rs 7 billion," said Narayan Das Manandhar, chief executive officer of Prime Commercial Bank.

"We thought that the collection would be less because the general investors have not yet got their money back from Sunrise Bank's primary issue though the money has returned to the banking channels," Manandhar said adding that the financial institutions also could not lend sufficiently as their closing was nearing.

The bank's Initial Public Offerings (IPOs) closed today after it received more applications than the units of shares it had floated. The bank floated 30,00,000-units of shares worth Rs 300 million on Sunday. According to the new regulation of Securities Board of Nepal (Sebon), the primary issue can be closed after the fourth day if the collection exceeds the target.

On the first day, Sunday, some 28,328 applications worth Rs 704.239 were received and on the second day 35,994 applications worth Rs 1.05 billion rolled in, making it a total of 1.75 billion in the first two days but by the end of third day, the collection shot up to over Rs 4 billion. "On the last day today, we expect the collection to cross Rs 7 billion," Manandhar, the CEO of the 21st commercial bank said. "The bank has 60 collection centres at Ranjana Cinema hall alone in New Road and has managed the collection well," Manandhar added.

Prime Commercial Bank — established on September 24, 2007 — was one of the last commercial banks to float primary issue. Citizen Investment Trust (CIT) was the issue manager for Prime Commercial Bank. Agriculture Development Bank Ltd (ADBL) is the now the last of 26 commercial banks that is planning to float its primary issue. It has appointed Ace Development Bank as its issue manager for the largest ever IPO of Rs 960 million — more than three commercial banks put together.

Earlier, the primary issue of Sunrise Bank was oversubscribed by around 30 times to over Rs 10 billion. Similarly, the primary issue of Bank of Asia Nepal was oversubscribed by below 19 per cent to Rs 5.40 billion whereas Citizens' Bank International's primary issue was oversubscribed by a little above 20 times to Rs 6 billion. Due to no other investment opportunity, investment in financial institutions' shares has become a newfound interest of late.

Meanwhile, Sebon has approved the much-awaited Chilime Hydropower Company's primary issue of 23,04,000 units. The board permitted Chilime to add a premium of Rs 223.70 to the face value of Rs 100 per unit, making it a total of Rs 323.70 per unit share equal to its networth.

Vibor Bikas Bank is planning to float 26,52,000-unit primary shares for the public.
Source:
THT
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NHPC resumes its trading

National Hydro Power Company Ltd. has resumed its transaction from today. SEBON suspended the trading of NHPC after it encountered a complaint against the deceptive act of NHPC. The company was charged for distributing the unsubscribed right shares unlawfully which it had issued on 28th July, 2008.

On 26th May NHPC made a press release, clarifying all its proceedings as lawful. NHPC confirmed that it has not breached any legal edges while performing any of the activities. esumption approval was given after the explanation was found satisfactory.
Source:
Jamb News Service
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FDI commitments down to Rs 5.5b

Foreign direct investment (FDI) commitments plummeted to Rs 5.53 billion in the first nine months of the current fiscal year as the country braced for the double whammy of power shortage and unrest in the Tarai belt. Last year in the same period, the country had received FDI commitments of Rs 7.96 billion.

"Lengthy load-shedding hours every day and frequent strikes in the Tarai are the main reasons for the decline," a high-ranking official, of the Department of Industry, requesting anonymity, told myrepublica.com. Investors feared that the power crisis faced by the country would result in greater usage of other energy sources, subsequently raising overhead costs. Furthermore, protests in southern Nepal--a key export-import point--raised the chances of there being more obstruction in the movement of raw materials or finished goods that have to be imported into or exported out of the country.

Although these fears resulted in significant downturn in FDI commitments, the figures of this year are higher than that of the year before last and earlier. Besides, the country also received more project proposals this year compared with the whole of the last fiscal year.

This year, the country received proposals for 150 projects from 29 different countries, with India topping the list. Nepal´s southern neighbor has proposed that it will invest Rs 2.34 billion in 28 different projects. China comes second with proposals for 51 projects worth Rs 875.24 million. Singapore then follows with proposals for four projects worth Rs 564.50 million.

If all the projects proposed by foreign investors come into operation, 8,305 additional employment opportunities will be created in the country.

The statistics provided by the Department of Industries show that most of the investments are going into the energy sector, followed by manufacturing. Foreign investors have proposed to invest Rs 2.20 billion in the energy sector and Rs 928.14 million in the manufacturing sector. However, in terms of job creation, the minerals sector tops the list. A total of 2,635 jobs will be created in this sector if all the projects worth Rs 474 million come into operation.

Nepal had received the highest FDI commitments, of 9.81 billion rupees, in the last fiscal year, as a housing boom and the newly explored potential for hydropower ventures lured overseas investors.

The Department of Industry had called the windfall "a sound peace dividend in foreign direct investment."
Source:
Myrepublica.com
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Book Closure Altered: PFLBS

Patan Finance Ltd. is having its book closure on 3rd June 2009 (2066 Jestha 20) instead of 28th May 2009 (2066 Jestha 14) for the purpose of issuing 1:1 right share.
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Right Share Issue: NSM

Nepal Share Markets & Finance Ltd. is issuing 1:3.629 right share from 28th June 2009 to 2nd August 2009 (2066 Ashad 14 to 2066 Shrawan 18).
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Right Share Issue: NABBC

Narayani Development Bank Ltd. is issuing 5:2 right share from today, 28 May 2009 (2066 Jestha 14).
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Upcoming 15th AGM: NSM

Nepal Share Markets & Finance Ltd. has announced its forthcoming 15th annual general meeting to be held on 24th June 2009 (2066 Ashad 10).
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Book Closure: NDFL

Nava Durga Finance Co. Ltd. is having its book closure on 2nd June 2009 (2066 Jestha 19) for the purpose of issuing 1:1.2 right share.
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Right Share Issue: NDFL

Nava Durga Finance Co. Ltd. is issuing 1:1.2 right share from 15th June 2009 to 19th July 2009 (2066 Ashad 1 to 2066 Shrawan 4)

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Right Share Issue: LFLC

Lumbini Fin. & Leasing Co. Ltd. is issuing 2:1 right share from 14th June 2009 to 19th July 2009 (2066 Jestha 31 to 2066 Shrawan 4). For this purpose it is having its book closure on 2nd June 2009 (2066 Jestha 19).
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Upcoming 12th AGM: MFCL

Merchant Finance Company Ltd. has announced its forthcoming 12th annual general meeting to be held on 27th June 2009 (2066 Ashad 12).
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Promoter Share Sale Call: LFC

Lalitpur Finance Ltd. has made a call for selling 31469 promoter share of Nepal Gharelu Tatha Sana Udhyog Bikash Bank Ltd
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Notice To Shareholders: WMBF

World Merchant Bank & Finance Ltd. has published a notice clarifying that the right share is being issued after getting permission from the central bank
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Right Share Issue Date Extended: UFLK

Universal Finance Ltd. has again extended its right share issue date upto 3rd June 2009 (2066 Jestha 20).

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Book Closure: NSM

Nepal Share Markets & Finance Ltd. is having its book closure from 15th June 2009 to 24th June 2009 (2066 Ashad 1 to 2066 Ashad 10) for the purpose of issuing 1:3.629 right share.
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Right Share Issue: Jyoti Bikash Bank Ltd

Jyoti Bikash Bank Ltd. is issuing 1:1 right share to its promoter shareholders from 8th June 2009 (2066 Jestha 25).
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SEBON Suspends Shares Trading of National Hydropower

SEBON suspended the trading of National Hydro Power Co. as the share market watchdog encountered a complaint against the deceptive act of NHPC. NHPC is said to have unlawfully distributed the unsubscribed right shares it had issued on 28th July, 2008. The company extended its right share issue date three times but the right shares were still not sold. Therefore, yesterday the company was suspended from trading to investigate the fact. SEBON have formed an investigation committee to find out the reality and has asked to present the report as soon as possible. Earlier, company had decided to distribute right share of 1:1 ratio. It is believed that Rs.300 millions shares were still not sold, and company had distributed the remaining unsold right shares illegally. The complaint was registered quoting about Rs.700 millions of right shares were still ambiguous.

Source:  Jamb News Service

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20 pc bonus share

Nepal Rastra Bank has granted approval to Malika Vikas Bank to distribute 20 percent of the paidup capital as bonus share from the profit of fiscal year 064/65. According to the press release of the Malika bank, it will distribute the bonus share soon. The bank is also issuing 1:3 right share to its shareholders.

Source:  Ekantipur

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Some banks are at risk: Governor

The Governor of Nepal Rastra Bank (NRB), Deependra Bahadur Kshetry, has stated that some of the banks have put deposits, the hard-earned saving of people, at risk and that the central bank could take tough steps against the banks at any time to safeguard the depositors´ interests. Khestry, who was in Biratnagar to inaugurate the head office of Srijana Finance, however, did not disclose the names of the banks in possible trouble. Referring to the action the central bank took against Bank of Kathmandu, Governor Kshetry said that the NRB intervened because of the disputes among its board directors and because the board attempted to operate the bank as a private property. "Our sole aim behind the action was to protect the deposits of the people," said Kshetry, elaborating that the new board formed by the central bank would hold the annual general meeting of the bank and form a new board of directors by the end of this fiscal year. Kshetry further stated that the Commission for Investigation of Abuse of Authority (CIAA) has unearthed yet another incident of financial embezzlement in another reputed bank. "The CIAA has already filed a misappropriations case against its promoters," he stated, refusing to divulge the name of the bank. Inaugurating the new finance company, Kshetry also said that the government has taken a policy of supporting banks and financial institutions that have been established with an aim to invest in agro-based industries. Kshetry praised banks and business associations for positively supporting the government´s Youth Self-Employment Program (YSEP), but he noted that more than the expected number of applications for loans under the program had made managing the program difficult. He went on to say that youth employment was an issue directly linked to the country´s peace and security, and that supporting the YSEP could help create a more investment-friendly environment. He also said that the Rs 200,000 to be pledged under the program was not a grant--that individuals taking the money would need to pay back the loan to the fund.

Source:  Myrepublica.com

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Deposits, lending, profits of commercial banks up

The deposits of country's commercial banks increased in the third quarter of the current fiscal year and along with the deposits, net profits and lending of the 25 commercial banks of Nepal have also gone up. The third quarterly report of Nepal Rastra Bank (NRB) shows that the country's banks have continued their growth despite global economic crisis. According to the unedited financial figures of NRB, Nepali commercial banks collected 27.35 percent more deposit up to the third quarter of this fiscal year compared to the corresponding period last year. The central bank's figures show 25 commercial banks have amassed Rs. 502.55 billion as deposits during the period against the Rs. 394.62 billion collected during the corresponding period last year. The deposit figures for the third quarter of fiscal year 2008/09 also included Rs. 50.87 billion in foreign currency and the remaining in domestic currency. Rastriya Banijya Bank(RBB), the largest bank of the country, collected the most deposits in the period followed by Nepal BankLtd. (NBL). RBB collected Rs. 60.67 billion while NBL collected Rs. 42.60 billion during the first quarter of this year. But Nepal Investment Bank (NIB) is fast catching of these two banks in terms of deposits. Likewise, collective loans and advances of the banks increased by 31.44 percent during the first quarter of the current fiscal year. The commercial banks provided loans and advances amounting Rs. 356.46 billion against Rs. 271.19 billion provided by the 23 banks in last fiscal year's third quarter. Nepal Investment Bank Ltd. was the largest provider of loans and advances during the period with Rs 34.41 billion followed by Agriculture Development Bank, Nepal(ADBN) with Rs. 30.46 billion,the NRB report said. Commercial banks collectively earned a net profit of Rs. 9.66 billion during the period against Rs. 6.35 billion last year. Among the 25 banks, RBB declared the highest net profit amounting Rs. 1.54 million, followed by Nepal Bangladesh Bank which posted net profit of Rs 939.22 million.

Source:  Ekantipur.com

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Stock Exchange takes action for RBS's act

The Rastriya Beema Sansthan announced its book closure on the same day it proposed to distribute 25% cash dividend and 25% bonus shares which is against the prevailing rule. RBS has announced its book closure from 25th May 2009 to 9th June 2009 (2066 Jestha 11 to 2066 Jestha 26) for conducting its annual general meeting scheduled for 9th June 2009 (2066 Jestha 26). The company sent a book closure notice to Nepal Stock Exchange only after the decision on dividends and bonuses were made. According to the existing provision, Stock Exchange has to be informed at least 21 days ahead of the book closure, once it proposes bonus shares. However, the company had informed the same day about the book closure and bonus declaration, said, one of the employee of the stock exchange. Hence exchange has asked RBS to clarify its act. "The company believes that, it had done the work according to the law and disseminated information before 15 days of Annual General Meeting as in the rule,"said Shivahari shrestha, Chief administrator of Rastriya Beema Sanstha. "There is no any information to SEBON about this issue. We will confirm it very soon" said, Niraj Giri, director of the Securities Board of Nepal. Beema Sanstha had decided to provide 25% bonus share and 25% cash dividend of the fiscal year 2058/2059 and 2059/060.Thecompany which is under the government authority has Authorized Capital of Rs.100 millions. Total of 995,138 shares are registered in Nepal stock Exchange.

Source:  Jamb News Service

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BoK files petition against NRB action

A director of the suspended board of the Bank of Kathmandu (BoK) has lodged a petition at the Supreme Court (SC) against the decision taken by Nepal Rastra Bank (NRB) to suspend its executive board. Director Dipak Narsingha Shrestha filed the petition on Tuesday, pleading with the apex court to annul the central bank´s decision and to allow the executive board to resume normal operations. In the petition, Shrestha also requested the SC to annul the decisions that the new NRB-appointed board might have taken after taking control of the bank´s management. The central bank had suspended the board of BoK and taken control of its management on May 20, amid deepening disputes among the promoters of the bank. The action was taken on the basis of a charge that the board had failed to safeguard the interests of the bank´s promoters and depositors. The central bank had sent a four-member NRB board led by Director Laxmi Prapanna Niraula to manage the bank. The petition has named Niraula the defendant.  Prior to the action, the central bank had sought clarification from the BoK board over its decision to remove Radhesh Pant from the post of Managing Director (MD) after it was convinced that due processes were not followed in his removal from the post. However, in its reply to the NRB, the BoK board had questioned the central bank´s jurisdiction over its enquiring into the decision taken by a bank´s board.

Source:  Myrepublica.com

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New FM promises better economy

Newly-appointed finance minister Surendra Pandey said on Tuesday that the next budget would be guided by a Common Minimum Programme (CMP) that they would finalise with other political partners after the formation of a full-fledged cabinet.  Speaking at the Reporters Club Nepal here, Pandey, who assumed office yesterday hailed the efforts of the immediate past finance minister Dr Baburam Bhattarai for generating more revenue. "The result-oriented programmes of the earstwhile government will be given continuity," he said adding that the size of the budget — that he is propably bringing by July-half — would be a little bigger in size than last year's which was Rs 236.15 billion. His predecessor Dr Bhattarai had presented his first budget of Rs 236.15 billion for the fiscal year 2008-09 on September 19 last year. The revenue target that he had set for this fiscal year was Rs 141.72 billion. Though the government was successful in revenue generation it failed to kickstart development works resulting in the growth forecast of 7.5 per cent getting hit. Dr Bhattarai was blamed for not being able to create job opportunities and spend on development works. However, Pandey said without elaborating that the government would emphasise on creating more jobs. He said a separate mechanism would be formed — if an all-party mechanism could not be formed — at the local level to expediate development works. He would focus on spending on development works and try to crack the whip on price hike. "We will also bring some relief packages," he promised. Pandey said that the priority of his government's budget would be to create an investment-friendly environment, improve industrial relations and increase investment in productive sectors to create job opportunities. "The government will encourage the private sector," he said adding that he would try to combine three pillars of economic development — government, cooperatives and private sector — for a prosperous Nepal. "People should feel the change," he added. However, Pandey said that he still needed to study the privatisation of government corporations and act against tax and revenue evaders.

Source:  THT

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FDI commitments down to Rs 5.5b

Foreign direct investment (FDI) commitments plummeted to Rs 5.53 billion in the first nine months of the current fiscal year as the country braced for the double whammy of power shortage and unrest in the Tarai belt. Last year in the same period, the country had received FDI commitments of Rs 7.96 billion. "Lengthy load-shedding hours every day and frequent strikes in the Tarai are the main reasons for the decline," a high-ranking official, of the Department of Industry, requesting anonymity, told myrepublica.com. Investors feared that the power crisis faced by the country would result in greater usage of other energy sources, subsequently raising overhead costs. Furthermore, protests in southern Nepal--a key export-import point--raised the chances of there being more obstruction in the movement of raw materials or finished goods that have to be imported into or exported out of the country. Although these fears resulted in significant downturn in FDI commitments, the figures of this year are higher than that of the year before last and earlier. Besides, the country also received more project proposals this year compared with the whole of the last fiscal year. This year, the country received proposals for 150 projects from 29 different countries, with India topping the list. Nepal´s southern neighbor has proposed that it will invest Rs 2.34 billion in 28 different projects. China comes second with proposals for 51 projects worth Rs 875.24 million. Singapore then follows with proposals for four projects worth Rs 564.50 million. If all the projects proposed by foreign investors come into operation, 8,305 additional employment opportunities will be created in the country. The statistics provided by the Department of Industries show that most of the investments are going into the energy sector, followed by manufacturing. Foreign investors have proposed to invest Rs 2.20 billion in the energy sector and Rs 928.14 million in the manufacturing sector. However, in terms of job creation, the minerals sector tops the list. A total of 2,635 jobs will be created in this sector if all the projects worth Rs 474 million come into operation. Nepal had received the highest FDI commitments, of 9.81 billion rupees, in the last fiscal year, as a housing boom and the newly explored potential for hydropower ventures lured overseas investors. The Department of Industry had called the windfall "a sound peace dividend in foreign direct investment."

Source:  Myrepublica.com

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Nagarik Lagani Kosh (CIT) says Prime Bank’s IPO crosses Rs 7bn

Prime Commercial Bank has received applications worth over Rs 7 billion for its primary issue that closed today.

“Our collection exceeded our expectations of Rs 4 million and crossed Rs 7 billion,” said Narayan Das Manandhar, chief executive officer of Prime Commercial Bank.

“We thought that the collection would be less because the general investors have not yet got their money back from Sunrise Bank’s primary issue though the money has returned to the banking channels,” Manandhar said adding that the financial institutions also could not lend sufficiently as their closing was nearing.

The bank floated 30,00,000-units of shares worth Rs 300 million on Sunday. According to the new regulation of Securities Board of Nepal (Sebon), the primary issue can be closed after the fourth day if the collection exceeds the target.

On the first day, Sunday, some 28,328 applications worth Rs 704.239 were received and on the second day 35,994 applications worth Rs 1.05 billion rolled in, making it a total of 1.75 billion in the first two days but by the end of third day, the collection shot up to over Rs 4 billion. “On the last day today, we expect the collection to cross Rs 7 billion,” Manandhar, the CEO of the 21st commercial bank said. “The bank has 60 collection centres at Ranjana Cinema hall alone in New Road and has managed the collection well,” Manandhar added.

Prime Commercial Bank — established on September 24, 2007 — was one of the last commercial banks to float primary issue.

Citizen Investment Trust (CIT) was the issue manager for Prime Commercial Bank. Agriculture Development Bank Ltd (ADBL) is the now the last of 26 commercial banks that is planning to float its primary issue. It has appointed Ace Development Bank as its issue manager for the largest ever IPO of Rs 960 million — more than three commercial banks put together.

Earlier, the primary issue of Sunrise Bank was oversubscribed by around 30 times to over Rs 10 billion. Similarly, the primary issue of Bank of Asia Nepal was oversubscribed by below 19 per cent to Rs 5.40 billion whereas Citizens’ Bank International’s primary issue was oversubscribed by a little above 20 times to Rs 6 billion. Due to no other investment opportunity, investment in financial institutions’ shares has become a newfound interest of late.

Meanwhile, Sebon has approved the much-awaited Chilime Hydropower Company’s primary issue of 23,04,000 units. The board permitted Chilime to add a premium of Rs 223.70 to the face value of Rs 100 per unit, making it a total of Rs 323.70 per unit share equal to its networth.

Source: THT
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