Is it Worth Applying for NMB Bank FPO??? How Much to Invest?

FPO Analysis:

In the due course of expanding the paid-up capital, 21st AGM of NMB Bank had endorsed the agenda of capital increment through FPO. Later the Board meeting of the company held on Paush 24, 2073 decided to issue 1,14,15,163 units shares at a premium price. The issuance of shares through FPO would not only increase the capital and collect reserves but also dilute the promoter shareholding to 51%.

NMB Bank had previously issued FPO to its Joint Venture Partner (FMO Netherland) at Rs 250.

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IPO Analysis of Rairang Hydropower Development Company Ltd.

IPO ANALYSIS

Company Overview:

Registered as a private limited company in 2nd Baisakh 2059 and then transformed into a public company in 20th Baisakh 2071, Rairang hydropower has its registered office in Kathmandu-11, Thapathali. This company has the hydropower centre in Panchthar district of Mechi zone.

The company has 500 KW Rairang Hydropower Project, 9900 KW Ewakhola hydropower project under its umbrella. The company took a loan of 104 crores for the construction of Ewakhola project, on Falgun 2071.

The main purpose of the initial public issue (IPO) is to manage the fund for the 9.9 MW Ewakhola project.

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Rising Interest Expense Slows Down BFIs Net Profit Growth? See Which Commercial Bank Was Least Affected !

COMMERCIAL BANKS

Analyzing the third quarter (Q3) report, we came to know the industrial growth of listed commercial banks have slowed down to 12% this year. The same was above 20% in the previous years. The logic for this is simple, the growth rate of expenses has exceeded the growth rate of income and as a result the net profit growth has decreased its pace.

Reviewing the expense side of profit and loss in commercial bank’s balance sheet, one can easily notice the tremendous growth of interest expense. The unhealthy competition between banks and financial institutions (BFIs) to attract the deposits has resulted in an enormous increase of interest expense. The average interest expense growth of commercial bank stood astounding 95% in last one year.

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Aarambha Microfinance Issuing IPO Shares From Today, When, Where, How Much and How to Apply?

IPO

Aarambha Microfinance Bittiya Sanstha Limited (AMBSL) is issuing its Initial Public Offering (IPO) of 2,94,000 unit shares Rs 29.4 million (Rs 2.94 crores) at the face value rate Rs 100 per unit, starting immediately from today Tuesday 27th February 2018 (15th Falgun 2074). The microfinance company endorsed its proposal to issue this IPO in its third annual general meeting (AGM) held on Saturday 4th November last year 2017 (18th Kartik 2074), and subsequently received its approval from Securities Board of Nepal (SEBON) on Thursday 4th January this year 2018 (20th Paush 2074).

The offering of the shares is open initially only for 4 trading days and will close on as early as next week Monday 5th March 2018 (21 Falgun 2074) if all shares are sold, else the closing date is extendible maximum up to Tuesday 29th Falgun 2074 (13th March 2018).

Interested investors must apply for a minimum of 50 units of this share and can apply a maximum of up to 1,000 units of the share. However, it is advisable to apply for only the minimum 50 units of the IPO share since mandatory allotment of only 10 units of share will be made to every applicant presumably by lottery system after its oversubscription.

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How Much Units Ideal for Investing in BPCL’s upcoming FPO Opening from Monday!

BPCL FPO

Butwal Power Company Ltd., (BPCL)’s upcoming Further Public Offering (FPO) on Monday January 29th 2018 (Magh 15, 2074) has become the talk among the investing pioneers in Nepalese stock market. The company is issuing 40, 81,000 units share worth Rs 2.04 arba as FPO which will close on Friday February 19th 2018 (Magh 19, 2074). The 501 (per unit) rupees priced FPO (Rs 401 premium added to the par value of Rs 100) whose issue manager is NMB Capital Ltd. has been a major interest to most of the market players in the stock market. However, the question arises what is the optimum unit of shares to be applied by investors? Although BPCL has stated 10 units of shares as the minimum share units and 20,400 units as the maximum share units to be applied but is 10 units the optimum quantity for the upcoming FPO?

Given that the hydropower company has been floating 40,81,000 units share which is comparatively large in volume, therefore, it is likely that the number of applicants will also be high for the FPO. If we analyze the trend of past months of IPO/FPO issuance, we can draw that the applicants will be in the range of 1.5 lakhs to 2 lakhs for the upcoming FPO. For instance, several IPO/FPO issuances of companies such as Unnati Microfinance Bittiya Sanstha Limited (UNNATI), Radhi Bidhut Company Limited (RADHIB), Support Microfinance (SUPPORT), Nepal Hydro Developer Limited (NHDL), Himalayan Power Partner Limited (HPPL), Premier Insurance Company Limited (PIC) and Nepal Grameen Bikas Bank Limited (NGBBL) had total number of applicants above 1 lakh 50 thousand and below 3 lakhs. The details of which are attached below:

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