Ridi hydropower’s IPO to debut on July 4 at Rs 338

Ridi Hydropower Development Company Limited has signed the listing agreement with Nepal Stock Exchange Limited today. It means that it will debut at the trading floor on July 4.
 
Ridi’s company secretary Alok KC said that though the company planned to finished distributing most of the certificates within by June 6, the certificate distribution took longer than they expected. The Ridi’s primary scrip is expected to debut at Rs 338 per share though the opening price brand is Rs 101.87 to Rs 305.10.

Executive Director of the company Guru Prasad Neupane claimed that there is high demand for Ridi’s share in that the company is expected to make a net profit of Rs 6.5 crore in the current fiscal year itself, which can entail a bonus share of 10 percent.

Laxmi Laghubitta IPO oversubscribed by over ten times in two days

The Initial Public Offering (IPO) worth Rs 3 crore floated by Laxmi Laghubitta Bittiya Sanstha Limited on June 24 has drawn more than 29 crores in just first two days.

According to Nabil Investment Banking Limited which is managing the issue, the IPO drew more than 18 crore in the first day itself, and more than Rs 11 crore has been collected at its office by the second day yesterday.“We are still collecting the applications filed the second day from the collection centers,” Nabil Investment’s CEO Pravin Raman Parajuli told. It means that the figures will rise further.

The microfinance institution based in Kathmandu has stated that out of the 3 lakh primary shares being floated at a face value of Rs 100, altogether 15,000 units have been set aside for the mutual funds and 9,000 units for its staff.

The issue would close on June 27, or by July 8 at the latest.Laxmi Laghubitta has an authorized capital of Rs 10 crore, issued capital of Rs 10 crore, and the paid-up of Rs 7 crore.Following the IPO, its paid-up capital will also rise to Rs 10 crore.

The class ‘D’ financial institution, which has been in operation since for the last three years, has a reserve profit of Rs 3.85 crore by the end of the last fiscal year, and projected figure of Rs 24.90 crore by the end of the current fiscal year. Its EPS stood at 0.29, which is expected to grow to 2.63 by the end of the current fiscal and up to 20.52 by the fiscal year 2072/73.

12.6% dividend of Jyoti Bikas Bank, AGM on July 16, 2014

Six long months after its Board of Directors decided to pledged 12.60 percent, including 7 percent bonus shares, to its shareholders from the net profit it posted in the last fiscal year 2069/70, Jyoti Bikas Bank Limited has finally announced its Annual General Meeting.

Issuing a notice today, the development bank based in Kathmandu has also announced the book closure from July 2 for its sixth AGM to be held at the Tribhuwan Army Club.

The 157th BOD meeting of the development bank had pledged the dividend back in January second week.

According to Jyoti’s company secretary Madan Mahat, the central bank took a long time to approve the final balance sheet of the bank, citing some technical aspects of a project being funded by the bank.

Last week they had taken some central bank officials to the site of Jiri Khola Sana Hydropower project to show that the problem has been resolved.

The national level development bank, which was established with the aim of financing hydropower and infrastructure, has invested Rs 23 crore in Jiri Khola Sano Hydropower.

Jyoti Bikash Bank had posted a net profit of Rs 7.26 crore in the last fiscal year 2069/70.-SSN

4:1 Right Shares of Purnima Bikas Bank Limited

The recently concluded special general meeting of Purnima Bikas Bank Limited has endorsed 4:1 right shares to the shareholders.

The special general meeting of the class ‘B’ development bank, which covers three districts, held in Bhairahawa on Saturday had endorsed the special proposal tabled following the decision of the bank’s Board of Directors to pledge the right shares to shore up the paid-up capital.

During the special event, chairman of the development bank Raju Narayan Shrestha informed that they have mobilized Rs 1.45 arba in deposit and Rs 1 arba in loan by Jestha end, according to a press release issued by the bank.

Purnima has been doing a good business over the years and had offered 10 percent bonus shares to the shareholders from around 125 percent net profit growth it posted in the last fiscal year 2069/70.-SSN

Three New Mutual Funds expected within August, 2014

Investors in the stock market have yet another reason to feel upbeat. At least three new mutual funds are expected to hit the market within next month, giving them good scope for portfolio diversification.

A new close-ended equity-oriented scheme worth Rs 80 crore of Siddhartha Capital Limited will hit the market in June itself.

NMB Bank has also finally got the much-awaited credit rating from ICRA Nepal, the only credit rating agency in the country, for its five-year, close-end, equity-base growth fund of Rs 60 crore.
Much like the five-year mutual fund has been named Siddhartha Equity Oriented Scheme (SEOS) to be floated at a value of Rs 10 per unit from June 24, NMB Sulav Investment Fund, too, has received the same credit rating: [ICRANP] AMC Quality 3 (AMCs), which is a good rating.

“We have already applied with the SEBON for the final approval, and are planning to float the scheme by the last week of Shrawan,” said highly placed officials with NMB Capital Limited.
NIBL Capital is also seeking final approval from the regulator to float a closed-end seven year scheme at the earliest.

It has already received Fund Management Quality Rating of AMC Quality 3 from ICRA Nepal for its Sambriddhi Fund-I close end, equity oriented fund of the size of Rs 80 crores, and is now only awaiting the final approval from SEBON, which it expects to receive “very soon”.

Needless to say that the new mutual funds are expected to make very good returns considering some of the huge IPOs in the offing, especially the primary shares of Upper Tamakoshi hydropower project.

Chairman of Nepal Investors’ Forum Raj Kumar Tilimisina says that as mutual funds are introduced to help even those people who do not understand the stock market properly or who cannot analyze the market efficiently to benefit from the share trading, such schemes are not just beneficial for investors, but for the entire market, as they give more depth to the market.

“And I can see that the investors are gradually getting attracted to mutual funds as the price of both the mutual funds in the market has increased around 30 percent since they were launched,” he noted.

He further opines, “I think the mutual funds can expand their area of investment, rather than heavily relying on the stock market, they can fare much better.”

So far a mutual fund each launched by the merchant bankers of Nabil and Siddhartha Banks are the only two such schemes in the market.

With the upcoming budget expected to announce some measures to further promote the mutual funds, the market has also been abuzz about a five-year mutual fund to be launched by NMB Capital Limited called NMB Sulabh Investment Fund worth Rs 60 crore.

The merchant banking arms of Laxmi Bank and Global IME Bank and NIBL had also sought SEBON’s approval for their schemes way back in early 2013.

Laxmi Capital is vying to launch Laxmi Value Fund, which is again a five-year closed-end balanced fund worth Rs 40 crore. Global IME is also planning a scheme identical to Nabil Balanced Fund-1.

In fact many more mutual funds were expected in the market after the government decided to treat mutual funds as a non-taxable entity.

And the key stakeholders in the capital market, especially the share market, were upbeat about mutual funds as they give much-needed depth and maturity to the market.
Such schemes are one of the safest investment tools for a novice investor, and almost as good as a pension plan for all.

When nobody seems to have an issue with more mutual funds in the market, why is it taking so long for these schemes to materialize?

Though the reasons vary for different companies.

Merchant bankers in general cite new regulations enforced by SEBON to seek credit rating for mutual fund schemes for the delay.

Out of the total 8 crore units of SEOS, 1.2 crore units have been set aside for Siddhartha Capital Limited, the merchant banking wing of the bank.

Interested investors must buy at least 100 units and at the most 80 lakh unit before the issue closes on June 29, or by July 9 at the latest.

Siddhartha Capital’s Chief Executive Officer Dhurba Timilsina further informed that SEOS will target 70 percent equity market, 25 percent bond market and only 5 percent liquidity management. -SSN

Surya Life Insurance to hold its AGM on July 12, 2014 ; dividend not likely.

Surya Life Insurance Company Limited will hold its Annual General Meeting on July 12. But, to the disappointment of its shareholders the company won’t be pledging any dividend for the last fiscal year 2069/70.

The annual event of the life insurer to be held in Biratnagar will only endorse the financial report of the company for the last fiscal year, and reappoint Nem Lal Amatya and Company as its auditor for the current fiscal year.

For the previous fiscal year, the last AGM of the company had offered 14.25 percent bonus shares plus the cash dividend equivalent to the taxes, besides 10:2.15 right shares to raise the paid-up of the company.
It may, however, be noted that the company has been posting robust growth in the current fiscal year.  Surya Life had posted amazing growth of 209 percent by the end of the third quarter. -SSN