Four new financial institutions book profit at Nepse

Four financial institutions – Sana Kisan Bikas Bank, Rural Microfinance Development Center, Hamro Bikas Bank and Jebil’s Finance – started their share trading at the Nepal Stock Exchange (Nepse) from today.

The two microfinance companies have debuted with high profitable margin at Rs 550 and Rs 510 per unit, whereas two financial institutions – Hamro Bikas Bank and Jebil’s Finance –debuted at Rs 160 and Rs 117, respectively.

Sana Kisan Bikas Bank – that has a face value of Rs 100 per unit – opened at around six times high to Rs 550 and closed the trading at Rs 605 per unit, whereas RMDC – that had offered its share at Rs 180 at premium, with an added premium of Rs 80 on the face value of Rs 100 – started trading at around three times higher at Rs 510 and closed at Rs 561 per unit today.

The debut price of newly listed companies is fixed between paid up value or three times the net worth of the company, according to the Nepse’s rule.

Following the rule, Sana Kisan Bikas Bank was allowed to trade from Rs 349 to Rs 1,047 per unit and RMDC within the range of Rs 319 and Rs 956 per unit, respectively.

Sana Kisan Bikas Bank saw its 2,783 unit shares being traded in 23 transactions, whereas RMDC witnessed 15,089 shares being traded in 102 transactions today.

Earlier, Sana Kisan Bikas Bank had floated primary shares worth Rs 60 million – in mid-July – that was oversubscribed by 30 times. Likewise, RMDC’s  – that had also floated its primary shares in mid-July – IPO was also oversubscribed by 11 times.