Century Commercial Bank & Sagarmatha Finance’s separate SGMs today; to endorse acquisition of SAFL in swap ratio of 100:95

 

Century Commercial Bank Limited (CCBL) and Sagarmatha Finance Limited (SAFL) are conducting their separate Special General Meetings (SGM) today (Ashad 18, 2074). The SGM of CCBL is being held at Aman Hall in World Trade Tower, Tripureshwor, Kathmandu while SAFL’s SGM is being held at Crystal Banquet in Manbhawan, Lalitpur.

Both the SGMs are the following common agendas:

  1. To endorse the final agreement for acquisition of Sagarmatha Finance by Century Commercial Bank
  2. To endorse the appointment of the DDA auditor P.L. Shrestha & Co. Chartered Accounts
  3. To endorse the share swap ratio of 100:95 as prepared by the Due Diligence Audit (DDA) report
  4. To provide authority to the BOD for completing the acquisition process of Sagarmatha Finance

Century Commercial Bank has set Asadh 10, 2074 as the book closure date for the purpose of this SGM. Likewise, shareholders of Sagarmatha Finance who have traded shares till Falgun 21, 2073 and registered within 7 days from today are eligible for participation in the SGM.

Century Commercial Bank’s paid up capital after recent acquisition of Innovative Development Bank and Araniko Development Bank stands at Rs 4.71 arba. Likewise, Sagarmatha Finance has paid up capital of Rs 78.63 crore. After acquisition of SAFL in share swap ratio of 100:95, CCBL’s paid up capital will reach Rs 5.45 arba.

Century Commercial Bank is further issuing 40% right share and acquiring Alpine Development Bank and Seti Finance. Shareholders of Sagarmatha Finance, Seti Finance and Alpine Development Bank will not be eligible to apply for its upcoming 40% right shares. Only the shareholders of Innovative and Araniko Development Bank are eligible for the right shares.

Source: sharesansar

Downfall of NEPSE Index Continues, Transaction Amount also Decreases

The NEPSE index has declined continuously for the second consecutive day. The index declined by 2.47 point to 1544.29 points on Monday. During the day, share transaction worth Rs 446.7 million took place of a total of 145 companies. The transaction amount decreased by Rs 120 million compared to the previous trading day.

 

On Monday, sub-groups commercial bank and development bank showed slight improvement. Both sub-group rose by 6 points on the day. However, hotel, hydropower, finance, insurance and production sub-groups showed downfall.

On Monday, Nepal Life Insurance recorded the highest share trading of Rs 35.9 million followed by Sanima Bank and Standard Chartered.

source: Merolagani

Companies earning massive premiums from auction; See which companies have collected more premium from auction

Many companies have been issuing right shares to their shareholders to further increase their capital. However, not all shareholders claim their right shares due to various reasons. These unclaimed right shares are eventually sold into auction, where other general public can bid for them. Nowadays, the unclaimed right shares have also been an opportunity for the company to increase their reserve. Premium collected from the sales of unsold right shares are added to the share premium account under the reserve of the company, which is free reserve and can be utilized to distribute bonus shares to its shareholders. Collection of premium from auction strengthens the company leading to increment in the net worth of the company.

In this analysis, ShareSansar has analyzed which companies have earned the most amount from premium collected through auction shares. In FY 2073/74, 58 companies have sold their unsold right shares through auction.

In the analysis below, figures of premium are calculated only on the basis of units sold multiplied by cutoff price. This means that the company has earned a minimum of this amount as share premium. The analysis shows that Agricultural Development Bank Limited (ADBL) and Citizens Bank International Limited (CZBIL) have collected the most amounts from sales of their shares.

1. Commercial Bank’s Premium collection:Above table shows that ADBL and CZBIL have collected more premium among the commercial banks that have auctioned their unclaimed right shares. ADBL and CZBIL have collected around Rs 51.37 crore and Rs 38.50 Crore respectively by selling 19.68 lakhs and 6.28 lakh unit ordinary shares and 77,676 unit promoter shares.

2. Development Bank’s Premium Collection:

Muktinath Bikas Bank Limited (MNBBL) and Sewa Bikas Bank Limited (SEWA) stood at the top of table among development banks with the total premium collection of around Rs 5.50 crore and Rs 3.34 crore. They have sold 103,167 units and 221,607 units ordinary shares, and 10,494 units and 752,151 unit promoter shares respectively.

3. Finance Company’s Premium Collection:

In finance sector, Sagarmatha Fnance Limited (SAFL) and Shrijana Finance Limited (SFFIC) have collected premium of around Rs 2.34 Crore and Rs 91.75 lakh by selling 167,144 unit and 30,552 unit ordinary shares and 566,279 unit and 30,670 unit promoter shares respectively.

4. Microfinance Company’s Premium Collection:

Out of five microfinance companies that have auctioned their unclaimed right shares, NMB Microfinance (NMFBF) has collected premium of around Rs 3.78 crore from 14,947 unit ordinary shares and 15,870 unit promoter shares. Likewise, Deprosc Development Bank Limited (DDBL) has collected premium of around Rs 1.81 crore by selling 15,970 unit ordinary shares.

5. Insurance Companies: Neco Insurance Company Limited (NIL) has earned the highest premium i.e. Rs 8.30 crore among all insurance companies. NB Insurance Company Limited (NBIL) collected Rs 4.45 crore in share premium.

6. Hydropower’s Premium Collection:

ridi.jpgRidi Hydropower Company Limited (RHPC) has collected premium around Rs 1.12 crore by selling unsold 59,384 unit ordinary shares and 14,278 unit promoter shares.

Upcoming auctions upto the end of Asadh 2074: 

Till the end of Asadh 2074, 11 more companies will be selling their unsubscribed shares through auction. Above cut off prices are estimated to be 10% less than the current market price.  As per the analysis, Jyoti Bikas Bank Limited (JBBL) and Nepal Bangladesh Bank Limited (NBB) will likely collect more premiums from the auction.

source: Sharesansar

Investors lose Confidence on VAT; NEPSE Plunges

Fake rumors of VAT applicability in share trading have shaken investors’ confidence resulting depressed share market on Sunday.

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On Sunday, NEPSE index has declined by 21.99 points to 1541.82 points. On the day, share trading of 148 companies took place totaling share transaction amount to Rs 567.7 million.

The transacted amount increased by Rs 70 million compared to the last trading day on Wednesday. In the rapid fall of the market, few investors aiming to encash the condition by purchasing shares has somehow supported the growth of transaction amount.

Today, total market capitalization has rested to Rs 1832 billion, a billion declines than the previous trading day.

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On the first day of the trading week, all sub-groups besides hotel and other have painted red. Insurance group has declined the hardest with 129 points followed by development banks with 30 points. Similarly, hydropower has declined by 25 points, commercial bank by 22 points, production by 20 and finance group have fallen by 6 points. Meanwhile, other group has inched up by 2.61 points and hotel group has slightly climbed up.

During the day, Nepal Life Insurance saw the highest number of share transaction of above Rs 50 million followed by Standard Chartered Bank and Himalayan General Insurance of above Rs 30 million.

Source: Merolagani

NEPSE 2016: A Year In Review

Nepal Stock Exchange went through numerous ups and downs in 2016. While it went mostly up, it has been in a bearish mood lately. It opened at 1151.38 points on the first day of 2016 and closed positively at 1443.38 on the last trading day of 2016 on December 29, a growth of 25.36%. It also reached the highest point of 1881.45 on July 27.

NEPSE signals positive growth

A 5-year trend comparison of the NEPSE index signals a positive growth. Prices of major companies have come down to the values when the NEPSE index was just at 1100 points. This means that the prices of these companies will further increase, and this might be a good time for new investors to enter into the market safely.

The year-on-year growths of market indices are presented below:

nepse-2016-growth-768x446

market-indices-768x452

 

Index measuring development banks has risen the highest by 40.42%, while Hydropower has plunged 11.04%

Charm in commercial banks seems to have been shifted to development banks. The sub-index measuring development banks increased by 40.42% while the commercial bank rose by 30.50%. Hotels, Finance, Insurance and Manufacturing & Production all posted a positive growth while Hydropower plunged a further 11%. 2015 was also not a good year for hydropower with only Sanima Hydropower reporting a positive growth in market price.

 

sector-wise-768x434

Similarly, Trading and Others sector also decreased slightly in 2016. A number of hydropower companies are coming up with IPOs. Api Power is expanding by developing solar power projects and building one more hydropower project. One of the most anticipated hydropower companies, Upper Tamakoshi, has yet to float IPO for the general public – which should increase attraction towards hydropower sector.

sector-growth-768x466

Central Depository System came into full-fledged operation in 2016

Although the implementation of CDS was done in 2015, it came into a full operation in 2016. Central Depository System made it possible to transfer the ownership of shares within 4 days instead of 2-3 months. High turnovers of almost Rs. 3 billion were possible only because of CDS.

Heading into 2017

The first trading day of 2017 closed on a positive note. Number of improvements in the stock market are in pipeline for 2017. ASBA system and online trading system will immensely help investors which are going to attract more investors and NRNs in the stock market. Brokers have also reacted positively to decentralize the secondary market and open branch offices throughout the nation, which will further benefit the industry. If the regulatory authorities are able to make better decisions for the betterment of the investors and the industry, the market is sure to reach new heights in 2017 as well.

 

source: sharesansar

NMB Bank announce 20% bonus shares, 1% cash dividend for tax purpose

NMB Bank Ltd has announced 20 percent bonus shares and 1 percent cash dividend for its shareholders.

A senior management executive confirmed that the board of directors meeting of the NMB Bank held on Tuesday decided to recommend 20 percent bonus shares to its shareholders and 1 percent cash dividend for the tax purposes.

With the announcement, NMB Bank has joined the list of top commercial banks of the country to offer the high dividend to its shareholders. The decision of the BoD is, however, subject to the approval of its upcoming annual general meeting and the NRB.

According to the unaudited financial report of the bank, its net profit has risen to Rs 43.37 crore in last fiscal year 2070/71, up from Rs 36.66 crore at the end of the previous fiscal year 2069/70.

The bank had distributed 15 percent cash dividend to its shareholders in the previous year.

After the adjustment of 20 percent bonus shares, the paid-up capital of the bank will surge to Rs 2.4 arba from Rs 2 arba.

source: sharesansar

Laxmi Capital’s debutant mutual fund gets good ICRA credit rating

Laxmi Capital Market Limited has got ICRA credit rating for its mutual fund scheme Laxmi Value Fund, which is a five-year closed-end balanced fund worth Rs 40 crore.

“We have just received [ICRANP] AMC Quality 3 (AMCs),” a high ranking Laxmi Capital officer told ShareSansar today. “Since getting credit rating usually takes the longest time to bring a mutual fund, we are now upbeat about launching Laxmi Value Fund at the earliest. All we need now is Sebon’s final approval.”

NIBL Capital is also waiting for the final approval from Sebon to float a closed-end seven year scheme that comes to the tune of Rs 80 crore at the earliest. It will be launching its first Mutual Fund called Sambriddhi Fund-I close end, equity oriented fund of the size of Rs 80 crores very soon as it has already received Fund Management Quality Rating of AMC Quality 3 from ICRA Nepal.

Now there are four mutual funds that have already been launched – two of Siddhartha group and one each of Nabil and NMB groups, and two more of the aforementioned schemes, which are about to the launched.

Moreover, Nabil is planning to launch yet another mutual fund while Global IME is also planning a scheme identical to Nabil Balanced Fund-1.

NMB’s debut mutual fund- ‘NMB Sulav Investment Fund-I’ has been recently floated to the public, and has already been oversubscribed.

NMB Sulav Investment Fund – I is a closed end fund with an initial corpus of Rs 60 crore, and may exceed up to Rs 75 crore. The mutual fund was floated at the face value of Rs 10. NMB Sulav Investment Fund has received [ICRANP] AMC Quality 3 (AMCs.

Stock analysts believe that the entry of mutual fund helps to stabilize the volatility of the stock market.

source: sharesansar