This is an interactive blog page on the information on Nepal Stock Exchange (NEPSE) online update. This site will also contains videos and slides on lessons for learning for stock investment as well as interviews too.
RSDC Laghubitta Bittiya Sanstha Ltd. (RSDC), on account of long Dashain as well as Tihar festive occasion, has just extended its ongoing 200% (1:2) right share issue deadline to several days up to 15 days after Tihar, now ending only on Monday November 6th 2017 (Kartik 20th 2074) instead otherwise ending immediately after Tihar on Sunday October 22nd 2017 (Kartik 5th 2074) earlier. There are now about 13 banking days to get 200% RSDC right shares at the face value of just Rs. 100. The microfinance has been issuing 23 lakhs units of right shares worth a total of Rs. 23 crores to its existing shareholders since Monday September 18th 2017 (Ashwin 2nd 2047).
The book closure date for the rights issue was set on Friday September 1st 2017 (Bhadra 16th 2074). Only those shares registered one trading day ahead of the book closure date i.e. till Thursday August 31st 2017 (Bhadra 15th 2074) are eligible to apply for these right shares. RSDC has assigned NIBL Capital Market Ltd. as the issue manager for this right share issue.
The current paid up capital of this company remains at Rs. 11 crores 50 thousands. After this right share issuance, its paid up capital will reach Rs 34 crores 50 thousands. RSDC has an authorized capital of Rs. 34 crores 50 thousands.
All interested applicants can collect the application forms from NIBL Capital Market Ltd, Lazimpat, Kathmandu as well as RSDC microfinance office, Kalikanagar -12, Butawal, Rupandehi. Similarly, one can also apply from the designated branch offices of Nepal Investment Bank, Chaabahil, Kirtipur, Jawalakhel, Kaushaltaar inside the Kathmandu valley and all the branch offices outside the valley, as well as ACE Capital Ltd., Laldarbaar, Kathmandu.
The company's 3rd AGM held earlier this year on Saturday March 25th 2017 (Chaitra 12th 2073) had endorsed 15% bonus share to its existing shareholders from the profits it earned in Fiscal Year (FY) 2072/073 and current issuance of this 200% right shares to its shareholders to increase its paid up capital to Rs. 60 crores by end of next Asadh 2075.
RSDC has earned a net profit of Rs. 1 crore 96 lakhs 87 thousands in the fourth quarter of the FY 2073/074. Its earning per share (EPS) is currently maintained at Rs.17 and 12 paisa. Its last trading price in the market on this wednesday was Rs. 1,330 per share.
Below are LINKS for its Right Eligibility Check, Form Download, Book Closure and Old Deadline as well as NEW EXTENDED DEADLINE Notices:
नेपाल संवत् धेरैजसो नेवारहरुको मात्र संवत् हो भन्ने कतिपय नेवार र गैरनेवारहरूमा परेको छ । यो कुरा अशिक्षीत वर्गमा मात्र नभएर सचेत वर्गमा पनि त्यत्तिकै देखिन्छ । नेपाल संवत्को आन्दोलन, अभियान र परम्परामा नेवारहरु मात्र लागेको देखेर पनि भनिएको हुनुपर्छ ।
Deadline to apply for 80% (10:8) right share of Sindhu Bikas Bank (SINDU) is just extended to not merely a single day, but several days up to after Tihar, now ending only on Sunday October 22nd 2017. You have now about 11 banking days to get your 80% SINDU right shares at the face value of just Rs. 100. The bank has been issuing 20 lakhs 97 thousands 5 hundred 40 units right shares at the face value of Rs. 100 worth a total of Rs. 20 crores 97 lakhs 54 thousand to its existing shareholders since Sunday September 3rd 2017.
The book closure date was already set for Friday August 25th 2017. Only those shares traded one day ahead of the book closure date i.e. Thursday August 24th, 2017 are eligible for the right shares. For this 80% right share, its adjusted price is Rs. 2 hundred and 22 while its average base price is Rs. 288.
SINDU received on Thursday June 29th 2017 the final approval from the Securities Board of Nepal (SEBON) to issue this right shares. Last year, the development bank had issued 1:1 (100%) right shares worth a total of 12 lakhs 9 thousand 3 hundred and 75 unit right shares to its existing shareholders on Sunday August 7th 2017.
NIBL Capital Markets Ltd. has been assigned as the issue and sales manager for this issue.
Interested shareholders can collect the application forms from NIBL Capital Markets Ltd, Lazimpat, Kathmandu and from the main office of Sindhu Bikas Bank Ltd. and its various branch offices round the country. The application forms can also be collected from Nepal Investment Bank’s Pokhara, Biratnagar, Birgunj, Narayangadh, Butawal, Nepalgunj and Dhangadhi branches.
The bank has published its current paid up capital Rs. 26 croes 21 lakhs 92 thousand and 50 in the fourth quarter (4Q) of the current fiscal year 2073/74. During this period, the bank has collected Rs. 5 crores 82 lakhs and 97 thousands in its reserve and surplus account. The bank successfully earned a net profit of Rs. 2 crores 55 lakhs and 50 thousand as well. It also has maintained its earning per share as Rs. 13 and its net worth per share Rs. 1 hundred 22 and 23 paisa.
From the bank's earning in the previous fiscal year 2073/74, it has distributed its shareholders 16.8% bonus shares and 0.88% cash dividend for tax purpose. After that bonus distribution and this 80% right share issue, its paid up capital will reach Rs. 47.19 crores.
As per Nepal Rashtra Bank (NRB)’s directive for all 1 to 3 district level development banks to increase their paid up capital to a minimum of Rs. 50 crores by the end of FY 2073/74, SINDU will need to issue a further capital hike of around 6%.
Its latest closing price stood at Rs. 1 hundred 84 as of Wednesday October 4th 2017.
Below are LINKS for its Right Eligibility Check, Form Download, Book Closure and Old Deadline as well as NEW EXTENDED DEADLINE Notices:
SEBON had compulsorily implemented Applications Supported by Blocked Amount (ASBA) system from Shrawan 1, 2074 for public issues (IPO/FPO) and Support Microfinance Bittiya Sanstha Ltd. (SUPPORT) is the next company issuing its IPO from full ASBA services all over Nepal today Wednesday October 4th 2017. Global IME Bank (GBIME), like several other banks, has come up with online ASBA service registration of application for share with the aim to provide easy and efficient services to its customers.
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The customers can use ASBA services from either mobile banking or internet banking service without being presented at the bank and also at zero cost for the applications of IPO, FPO and Mutual Funds.
STEP 1:Open Global IME Internet Banking by clicking on the link below.
STEP 2:Position the cursor at ASBA ONLINE at top right corner as shown.
STEP 3:Click login after entering your online banking username and password as shown.
STEP 4:You will have 'Share Application Form' to enter your information details as shown as shown.
List of available public offerings along with details on the apply button of the
public offering for application submission.
STEP 5:Complete the upper portion of the form with your information into the fields as shown.
Note at the bottom the 'available balance' of your account !
STEP 6:Scroll down and complete the bottom portion of the form with your information into the fields as shown.
Read the terms and conditions in the box at the bottom, check the circle to mark your agreement and then click 'Apply' in the red box at the bottom.
STEP 7:Click 'Confirm' (or 'Edit' if incorrect) for share conformation as shown.
STEP 8:You will get a dialog box from the Global IME Bank on your screen displaying that 'A code has been sent to your registered mobile number' in green box with details as shown.
STEP 9:Enter into the 'OTP' box the 6 digit code sent to your registered mobile number and hit 'Submit' in the red box at the bottom as shown.
STEP 10:If everything goes well, you will get a 'Customer Verification' dialog box displaying 'Your account details has been verified successfully.', then hit the 'Submit Form' in the red box at the bottom as shown.
STEP 11:You will then be offered 'ASBA Receipt' dialog box with the 'PDF' icon link, click it to download your receipt as shown.
STEP 12:Finally, save the pdf ASBA receipt for your future reference as shown.
That is it! You are done!! Hope this helps & Good Luck!!!
Support Microfinance Bittiya Sanstha Ltd. (SUPPORT) is issuing 1,80,000 unit ordinary shares of its Initial Public Offering (IPO) worth Rs 1.80 crores (Rs. 18 million) to the general public starting immediately from tomorrow Wednesday October 4th 2017. The microfinance company received the approval from Securities Board of Nepal (SEBON) for issuing this IPO two months ago on Friday August 4th 2017.
The offering of the shares at worth rate Rs. 100 per unit is open initially only for 4 banking days and will close on as early as next week Monday October 9th 2014 if all shares are sold, or the closing date is extendible maximum up to next month Thursday November 2nd, 2017.
Interested investors must apply for a minimum of 50 units of this share and a maximum of up to 900 units of the share.
The microfinance company has set aside 3,600 unit shares (2%) for its employees and 9000 unit shares (5%) for the existing 11 mutual fund companies. The company is floating 1,67,400 unit shares to the general public alone.
The issue and sales manager for this IPO share is NMB Capital Ltd. in Nagpokhari, Kathmandu.
Since SEBON has made Applications Supported by Blocked Amount (ASBA) mandatory starting from mid August 2017, all the interested applicants can collect ASBA forms from all ASBA-approved banks around the nation and submit the completed forms accordingly. One can also make paperless application directly online through the participating banks as well.
The microfinance company is aiming to raise Rs. 1.80 crores through this offering. After the IPO allotment, its paid up capital will reach Rs. 6 crores from its current Rs. 4.20 crores. Its authorized capital stands at Rs. 15 crores. After this IPO sale, the promoter to public ratio of the company will be maintained 7:3 (70% by 30%).
In the fourth quarter (Q4) of the fiscal year 2073/74, Support Microfinance has earned Rs. 48.04 lakhs, with a net profit rising to Rs 48.04 lakhs from a loss of Rs. 27.49 lakhs in the corresponding time of the previous fiscal year 2072/73. It has made a profit growth of 274.75%, with its net interest income rising from Rs. 36.50 lakhs in the previous quarter to Rs. 2.65 crores in the current 4Q. It has a current reserve of Rs. 21.31 lakhs in Q4 that surges by 162.09% from its previous reserve of Rs. 34.32 lakhs.
Its non-performing loan (NPL) stands at 0.82% in Q4 from 0.38% and CD ratio at 354.93%. Its earning per share (EPS) stands Rs. 11.44 and net worth per share at Rs. 105.07.
At present, the microfinance is providing its services in 10 various districts, including, Panchthar, Tehrathum, Dhankuta, Sunsari, Bhojpur, Khotang, Udaypur, Sindhuli, Ramechhap and Makwanpur.
Provided below are Click Links for its Recent 4Q Financial Report, Company Analysis, IPO Issue Notice and Announcement Notice.
Dan Wasyluk discovered the hard way that trading cryptocurrencies such as bitcoin happens in an online Wild West where sheriffs are largely absent.
Wasyluk and his colleagues raised bitcoins for a new tech venture and lodged them in escrow at a company running a cryptocurrency exchange called Moolah. Just months later the exchange collapsed; the man behind it is now awaiting trial in Britain on fraud and money-laundering charges. He has pleaded not guilty.
Wasyluk's project lost 750 bitcoins, currently worth about $3 million, and he believes he stands little chance of recovering any money.
"It really was kind of a kneecapping of the project," said Wasyluk of the collapse three years ago. "If you are starting an exchange and you lose clients' money, you or your company should be 100 percent accountable for that loss. And right now there is nothing like that in place."
The current scenario of Nepalese economy, recent developments and stock market all are pointing at one fact: it is high time for investors to grab stocks of good companies in NEPSE.
Here are few details and updates on the market that one should consider:
An Ongoing Market Correction
The benchmark index which touched an all-time high of 1,881 points last year is now hovering over 1,530 points suggesting that the market is facing a correction. It was already expected that a correction was inevitable as the market rose significantly last year after companies floated excessive right and bonus share, however, the correction is still said to be ongoing.
Moreover, the companies whose scrip was traded at high prices are now being traded at lower ranges. Last year’s bull run can be attributed to increase in stock prices of Banking and Finance institutions leading to positive investor sentiments. As of now, data shows that insurance and Micro finance sectors are seeing a super bull. Lately, Stock prices of most of the companies have come down suggesting a good time to grab stocks of good companies.
A Growing Economy:
According to a report of World Economic Forum, a Swiss non-profit organization, Nepal has been ranked as the 3rdfastest growing economy in 2017/18 with the growth projections of 7.5 percent. The World Bank has credited the growth to a good monsoon, reconstruction efforts and normalization of trade with India. Moreover, the expected growth rate during next year is 6.5 percent.
This hints that the Nepalese economy after facing the Great April 2015 Earthquake and subsequent economic blockade by India has got off on the recovery track and is slowly growing.
However, taking a look into the GDP and the total market capitalization, the latter is far lower than the size of total GDP. It means the prospects are favorable in the stock market and market is yet to grow. With the growth in the economic activities, the companies are also expected to jump in the growth bandwagon trudging the NEPSE forward.
Moreover, due to a massive increase in capital base of the banking sector, banks are now capable of discharging huge amounts in loans. Furthermore, loan demand of the corporate and retail sectors is also increasing and with the right shape of things, those sectors are set to see an increase in their profitability.
Likewise, after the Great Earthquake, awareness regarding insurance and its importance has rose leading to an increase in the businesses of the insurance companies. Moreover, the government is also mulling over implementing a compulsory insurance policy. Thus, the insurance business is set to soar in the upcoming days and it will affect the stock market, nevertheless, positively.
Online Trading:
Recently, talks have surfaced that there is a high possibility of introduction of online trading system in NEPSE. A technological advancement of such a magnitude will surely induce a never-seen-before bull run in the market. Historical cases have shown that, technological advancements in the stock markets lowered the entry barrier to trading leading to a tremendous increase in the prices and indexes. The impact of new infrastructure was visible as NEPSE rose to a historical high with the introduction of CDS (Demat) system during fiscal year 2072/2073.
With the online trading in operation, the market will see many new investors from inside and outside the Kathmandu Valley. Moreover, Nepali citizens working or living in foreign lands can also participate in the stock market rising up the transactions and turnovers.
Declining Interest Rates:
As of now the return from dividends and share prices have outgrown the return from average deposit interests. As the rate of interest is declining continuously for the past few months, the returns from shares are higher than returns from interest. Many companies’ stock yield is more than the market interest rate. Thus, the retail and institutional investors might channel more funds in the share market if the interest rate continues to decline in the upcoming months.
Upcoming Elections:
With the conclusion of Local level election, Nepal has trudged yet another political milestone, however, things won’t stop here. The Federal Level and Central Level elections are yet to be held. With the successful implementation of the federal structure, market analysts believe that Nepal will be politically stable in the upcoming year. Political stability in the economy ensures an investment friendly environment which is expected to result in inflow of investments in the various economic sectors. With the growing economy, the NEPSE is expected to respond in favor of the investors.
Broker License to Commercial Banks:
Recently, the Nepal Rastra Bank, regulator of banking institutions in Nepal, has formed a committee to study the possibility of allowing commercial banks to act as stock brokers. As the Banks and Financial Institutions Act (BAFIA) has no provisions on barring commercial banks from offering stock brokerage services, the Central Bank is expected to give a-go-ahead to the banks.
Moreover, the Securities Board of Nepal (SEBON) has also supported the idea to allow commercial banks to operate as stockbrokers. SEBON’s Securities Businessperson Regulations 2008 has a provision allowing banks and financial institutions to offer brokerage services.
The provisions state that, “Banks or financial institutions established under the prevalent laws may conduct securities business as stockbroker, securities dealer and market maker through their respective fully owned subsidiary company.”
If this idea materializes, the commercial banks can operate brokerage departments throughout the Country which will lead to an influx of additional funds. The banks, with available resources are capable to offer services in the rural areas too and such development will help the market to grow faster.
Broker Branch Office Expansion
As per the current stats, there are 50 stockbrokers in Nepal. Moreover, 44 remote work stations were set up outside the Kathmandu Valley, but they are all based at urban areas leaving the rural markets untapped. With the expansions of broker offices in various parts of the Country the brokers will realize a business expansion leading to an increase in stock trading.
New Mutual Funds in Pipeline
Mutual funds, by pooling small investments from many investors hold diversified portfolios. They are usually equipped with ample information on the firms with good growth prospects. Moreover, mutual funds by channeling their investments influence the management of a firm to boost their performances which in turn leads to a favorable effect of firm’s stock prices. As of now, there are 5 new mutual funds in pipeline and one is set to launch IPO soon. With this the total number of Mutual funds in Nepal will rise to 17. Cases around various stock markets show that the growth in number of mutual funds has led to a growth in the overall stock market.
Margin Trading Facility to Brokers
Talks have surfaced that the government is mulling over to facilitate brokerage firms to conduct margin trading. If the plan materializes, then the investors would be able to trade with more capital than they would without the facility.
Thus, the Nepse still has a room to grow and the upcoming days signal a walk in the positive direction. However, investment in securities is subject to market risk and one must utilize his/her knowledge on the market potential and risks before jumping into investing funds.
Revival of Investor’s forum
With the recently concluded elections of the Nepal Investor’s Forum, a non-profit body working for the betterment of the stock market, the Forum is said to be revived. Moreover, the Forum’s newly elected Chairman, Ambika Prasad Poudel in an interview with ShareSansar informed that the Forum is committed to study well-developed markets and advocate the need for changing certain policies that impede our market from becoming more investor friendly. According to Poudel, the Forum will focus to bring positive changes which will result in higher level of transactions, increase in government revenue and overall development of the market.
Increasing awareness about share market among general public
Considering the recent developments and ease of trading with the Demat system, there has been a rise in number of the general public who are gradually becoming more aware about the stock market. The last years bull run have had an impact on the public psyche that investing in stocks can bring favorable returns. People from all walks of life can be seen these days in the trading platforms around Kathmandu Valley, learning enthusiastically about the market movements and future prospects. Thus, there has been a rise in the level of awareness among general public which will lead to an increased level of investment moving the market towards growth.
Disclaimer:Although the long term growth prospects in the NEPSE seem favorable to the investors. The short term scenario is quite different as market is showing volatile movements lately. Moreover, Investment in stock market is purely subjected to market risk and all the factors must be self-judged by the investors before buying stocks. Thus, one should consider this article as an aid in market analysis rather than a marketing call to invest in shares.
We hope this article helps you to firm your investment decisions and Happy Dashain 2074, Wish you a Prosperous Investing Year ahead.
