United Modi Hydro, Api Power Company to floate primary share; NIBL Capital Markets issue, sales manager

The stock market will have two more hydropower companies as United Modi Hydropower and ApiPower Company are going to float primary shares to the public soon.

NIBL Capital Markets – a wholly owned subsidiary of Nepal Investment Bank and a licensed merchant banker from the Securities Board of Nepal (Sebon) has signed agreements with them to act as the issue manager and underwriter for their Initial Public Offerings (IPO).

Chief executive of NIBL Capitals Shivanth Bahadur Pandé and MD of United Modi Hydro Sudhir Prasad Timilsina signed the agreement yesterday on behalf of their respective institutions.

United Modi Hydro will issue some 4,000,000 units of stock worth Rs 400 million at the face value of 100 per unit.

Currently, United Modi – that is in the process of converting itself into a public limited company – runs the 10 MW Lower Modi-1 Hydropower Project in Parbat and is now constructing 10.5 MW Lower Modi-2 Hydropower Project as the second part of the cascade project.

Likewise, Api Power Company will issue up to 2,046,240 units worth Rs 204,624,000 at Rs 100 per unit.

Chairman of Api Power Guru Prasad Neupane and GM of NIBL Capital Ram Krishna Khatiwada signed the agreement, on behalf of their respective institutions, on 16th January.

Api Power Company has already started construction of the 8.5 MW Naugard Gad Project in Darchula.
Currently, there are five hydropower companies listed at the Nepse.

NIBL Capital Markets, Finnacle Capital sign Joint Cooperation Agreement

NIBL Capital Markets — a subsidiary of Nepal Investment Bank and a licensed merchant banker from Securities Board of Nepal (Sebon) — has signed a Joint Cooperation Agreement (JCA) with Finnacle Capital Advisors, India (Finnacle).

Finnacle Capital — that has offices in New Delhi and Hyderabad and affiliate relations in London, New York and Sydney — offers independent advice on Global Project Finance, Capital Raising and Merger and Acquisitions (M&A) practices for investors and project developers in energy, oil and gas, urban infrastructure, transportation, technology and media industries, according to NIBL Capital Markets that renders a comprehensive and a wide range of financial solutions ranging from issue and sales management, securities underwriting and share registration to portfolio management services.

Under the agreement signed on March 3, NIBL Capital and Finnacle will work jointly on providing advisory services including Project Financing and Corporate Finance Solutions to Nepali clients in accessing global commercial and multilateral credit solutions for infrastructure projects in the country.

Chairman of Finnacle Capital and ex managing director and chief credit and risk officer of State Bank of India Sanjay K Bhattacharyya visited Kathmandu to sign the agreement with NIBL Capital.

The strategic relationship will benefit both the companies in terms of their business goals and will create synergy for fostering the growth and development of businesses and capital markets in Nepal, it said.

NIBL Capital Markets — a wholly owned subsidiary of Nepal Investment Bank — aims to provide exceptional and customised financial solutions ranging from merchant banking activities to advisory services. "It is established with a mission to be the premier provider of investment banking services, seeking profitable growth through client value creation, stewardship, integrity, and innovation," it added.

Mega Bank to float primary shares soon

Mega Bank Nepal will float primary shares to the public by the first half of April.

Mega Bank will issue 6,990,000 unit shares at a face value of Rs 100, totalling Rs 699 million — which is 30 per cent of the bank’s issued capital of Rs 2.33 billion.

“The Initial Public Offering (IPO) of the bank will happen this fiscal year and is currently scheduled for the end of the third quarter,” said chief executive of the bank Anil Keshary Shah, after signing an agreement with issue managers here today.

The bank has appointed Citizen Investment Trust, Nabil Investment, NMB Capital and NIBL Capital Markets as its issue managers for the primary issue.

“Since the bank is issuing public shares on a large scale, we chose to jointly appoint four issue managers,” he said, adding that the general public has waited long for the bank’s shares to be floated in the market.

“Now we are ready to start the process of floating our public shares.”

No matter what volume of applications we receive, no one will go empty handed from the Mega Initial Public Offering, Shah added. “Our best endeavour will be to make Mega Bank’s Initial Public Offering as inclusive as possible, as well as to streamline the process to make the Initial Public Offering easily accessible to all interested investors.”

Of the total 32 commercial banks in the country, Mega Bank will be the 29th commercial bank to be listed at the secondary market that is performing better these days due to expected change and break, through in the political deadlock.

NIBL Capital Markets to start service as Depository Participant

NIBL Capital Markets — a wholly owned subsidiary of Nepal Investment Bank — has received the depository membership licence from CDS and Clearing Ltd (CDSC) to start services as a depository participant (DP).

NIBL Capital, a licensed merchant banker from the Securities Board of Nepal (Sebon), aims to provide depository participant services to investors through the branch network of its parent company –– Nepal Investment Bank.

A depository participant is an intermediary that maintains electronic accounts of securities on behalf of investors and provides services like the transfer and sale of securities.

NIBL Capital Markets will work closely with CDSC to dematerialise and convert the current stock of paper shares held by domestic investors to an electronic format.

"With its strength of professional expertise, talent, strong capital base, and sturdy long-term vision, NIBL Capital wishes to serve as an agent of change in achieving a common goal of economic growth and prosperity," said chief executive of the company Shivanth Pande.

"We have established NIBL Capital with a mission to be a premier provider of investment banking services, seeking profitable growth through client value creation, stewardship, integrity, and innovation," he said, adding that at NIBL Capital, we look forward to help our clients not only realise and plan their financial goals, but most importantly, to help achieve their goals with a well-conceived balance of risk and return.

Currently, NIBL Capital renders a comprehensive and wide range of financial solutions ranging from Issue and Sales Management, Securities Underwriting and Share Registration to Portfolio Management Services.

Similarly, NIBL Capital has also applied for a mutual fund licence.

NIBL Capital Markets starts business

NIBL Capital Markets — a wholly owned subsidiary of Nepal Investment Bank — formally commenced its business today.

A licensed merchant banker from the Securities Board of Nepal, NIBL Capital aims to provide a comprehensive and a wide range of financial solutions ranging from Issue and Sales Management, Securities Underwriting and Share Registration, to Portfolio Management, it said, adding that as the company embarks on its first year of operation, it is committed to rendering services to a diverse prospective client base from financial institutions and businesses, to individuals with unique needs.

In the near future, NIBL Capital aims to expand its business and venture into Depository Participant functions and the Mutual Fund segment too.

Dedicated to core service and delivery, NIBL Capital is guided by the principle of seeing value in a different way and helping create synergy that will allow its clients to achieve their goals, it added.

With the strength of the parent company, Nepal Investment Bank, coupled with a strong network and experiences, the company hopes to act as the premier and trusted provider of customer-centric and innovation-driven investment banking services in Nepal, it said, adding that NIBL Capital wishes to serve as an agent of change in the development of the Nepali capital market to help achieve the common goal of economic growth and prosperity.