NBL FPO at Rs 280 Best Opportunity for Portfolio Add !

FPO:

After much wait, Nepal Bank Limited (NBL) is issuing its Further Public Offering (FPO) to the general public. The bank is issuing a total of 1,76,84,858 unit shares as FPO at a face price of Rs 280 per unit share. The bank created many controversies when it had announced to issue FPO as the bank was unable to comply with the guidelines of Securities Registration and Issue Regulation, 2073. People were unsure whether the bank would be able to issue FPO or not. However, the commercial bank is now issuing FPO after gaining approval from all the regulatory bodies.

Issue Synopsis:
Company Name                       : Nepal Bank Ltd (NBL)

No of Shares Issued               : 1,76,84,858 units

Amount to be Collected        : Rs 4,95,17,60,240

Issue Manager                          : Siddhartha Capital Ltd

The interested applicants can make their applications through any of the financial institutions providing C-ASBA facility. The application can made for minimum of 50 unit shares and a maximum of all up to 1,76,84,858 unit shares.

After the new decision being made by the Securities Board of Nepal (SEBON), the institutional applicants can thus apply for the FPO share from the first day as well. The issue is now open, starting from Friday yesterday June 29th 2018 (Ashadh 15, 2075) initially for about a week lasting till this Thursday July 5th 2018 (Ashadh 19, 2075).

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Check the Nepal Bank (NBL) Company Analysis Here !

COMPANY ANALYSIS:

Check the link below for detail information on the RECENT 2075/74 Company Analysis of Nepal Bank Ltd. (NBL):

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CHECK NMB BANK COMPANY ANALYSIS HERE !

Check the link below to read/download the Company Analysis of NMB Bank (NMB):

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How Lucrative is FPO of NMB Bank? How much to Apply?

FPO:

The FPO issuance of NMB Bank has started from today. The bank is issuing 1,14,15,163 unit shares at a price of Rs 333. The bank has endorsed the public offering to meet its capital requirement of Rs 8 arba. After issuing the Further Public Offering, the share capital of the bank will stand at Rs 7.60 arba. To fulfill the minimum capital requirements of Rs 8 arba, NMB will need to issue only about 6% bonus shares. Along with the fulfillment of capital requirement, the company’s share structure will be converted to 51:49. The current capital structure of the bank is around 60:40.

Just like in previous FPOs, this issue has also gathered much interest from the investors. But in the recent period, the investors have started to become wary as the issue price is very close to the current market price. The recent FPO issuance of Butwal Power Company and Pokhara Finance can be considered as examples.

The main issue creating dilemma among the investors on whether to apply for the FPO is its price of Rs 333, as the current trading price of the stock is Rs 368. There is not much room for capital gain should the market continue its recent downward trend. The calculation of the FPO price based on the SEBON’s guidelines was determined to be Rs 535. The bank had also proposed the FPO at Rs 422 earlier, but after certain market survey, it lowered the price to Rs 333.

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Butwal Power (BPCL) FPO Allotment Today, Wednesday !

FPO ALLOTMENT

Butwal Power Company Limited (BPCL) is allocating its much talked further public offering (FPO) today Wednesday 27th March 2018 (14th Chaitra 2074). The company had floated 4.081 million (40.8 lakhs) unit shares worth Rs 2.04 billion (Rs 2.04 arbas) at a face value of Rs 100 at a premium of Rs 401 about two months ago starting from Monday 29th January 208 (15th Magh 2074) to Friday 2nd February 2018 (19th Magh 2018) for 5 days.

Subsequently, the company had then called up for institutional investors for the issues from Friday 9th February 2018 (26th Magh 2074), but 1.169 million (11.69 lakhs) unit shares still remained unsubscribed for despite the deadline extension to allow the promoter investors to participate in the issuance and thus, the underwriter companies had to purchase the remaining unsubscribed unit shares.

NMB Capital Limited is the issue manager this FPO that was floated for Rs 501 per unit share. The power company has earned Rs 5.992 million (Rs 59.92 crores) in the second quarter (Q2) of the current fiscal year. Its paid up capital stands at Rs 1.81 billion (Rs 1.81 arbas). Recently, the continuous bearish trend in the capital market has decreased charm of public issues. At present, the market price of the stock is at Rs 468 as per the last trading yesterday Tuesday.

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National Life Insurance (NLICL): Company Analysis !

National Life Insurance Company (NLICL) has stated rise in net profit by whooping 100.94%in the second quarter of the FY 2074/75.

ANALYSIS DOWNLOAD PDF LINK

As per the unaudited report of the second quarter, the insurance company reported net profit of Rs 17.08 crore in the Q2 of the fiscal year 2074/75, up from Rs 8.50 crore of the corresponding fiscal year.

The company’s earnings from premium have rose to Rs 2.45 arba from the corresponding year’s Rs 2 arba. The company’s insurance fund stands at Rs 19.26 arba which was Rs 15.78 arba in the corresponding quarter of the last fiscal year.

The paid up capital of the insurance company is Rs 1.65 arba with Rs 39.20 crore in the reserve. Currently, National Life Insurance is seeking approval from Securities Board of Nepal (SEBON) for the issuance of 10:6 (60%) right shares. After the issuance of 60% right share, its paid up capital will reach Rs 2.64 arba and met the capital requirement of Rs 2 arba as per Insurance Board.

Q2 Report