Share market likely to open from May 24

Instead of tomorrow, the share market is going to start trading from May24.
The market has been closed since April 26 after the devastating 7.8-magnitude earthquake of April 25. And it had initially planned to start trading from tomorrow. But the market lost confidence after another earthquake of 7.3-magnitude, according to USGS, on May 12. The market is closed - for the first time in its history - since April 26.
However, Nepal Stock Exchange (Nepse) is yet to inform its regulator, Securities Board of Nepal (Sebon), according to general manager of Nepse Sitaram Thapaliya.
The Nepse has not officially notified the public, but the marker cannot open tomorrow, he said, adding that it would not be possible to resume trading from Sunday according to earlier plan due to Registrar to Shares, brokerage companies, Central Depository System and Clearing Ltd and investors are shaken after the May 12 earthquake.
Nepse will remain closed next week also due to pressure from some big investors and the brokerage companies. The share market was closed after the April 25 earthquake as some of the brokerage firms and Registrar to Shares (RTS) suffered huge damage, apart from Central Depository System (CDS) and Clearing Ltd, that was worst hit.
Though, some of the stakeholders proposed the market to open partially – during today's meeting – most of the stakeholders sought for few more days to calm the nerves of the shaken investors. "The market has lost confidence after the May 12 earthquake," they said, suggesting Nepse to open trading for an hour Sunday, and gradually increase its trading hour to normal. But Thapaliya said that the Nepse cannot open for only one hour. "Either the trading hours will be normal or the market will remain closed for the time being," he added.
The market operates for three hours from 12 to 3 five days a week from Sunday to Thursday.
Some of the Registrar to Shares including Civil Capital, Siddhartha Capital, NMB Capital and Growmore Merchant Banker have asked for an additional period of one week to set up their offices damaged by the earthquakes. Similarly, CDS and Clearing Ltd has also sought time to shift its office to Nepse premises in Bhadrakali from the current building that has been damaged badly.
The share market that is going to open after a month from the earthquake of April 25 is expected to see a selling pressure due to investors' need of cash and also lost confidence.

NLG Insurance to go public

NLG Insurance is floating primary offering worth Rs 67.5 million from tomorrow.

The non life insurance firm has offered its ordinary shares at face value of Rs 100. Among the total 675,000 ordinary shares, 27,000 units are allotted for the company's staffs, 33,750 units for mutual funds and the remaining 614,250 units are meant for general public.

The Initial Public Offering (IPO) managed by Civil Capital will be closed by April 2 at soonest or by April 12 at latest in case of under-subscription, it said. The insurance company's paid up capital Rs 157.5 million at present will be increased to Rs 225 million following the public offering.

Insurance companies have to increase their paid up capital as the regulator ¿ Insurance Board had directed life insurance companies to increase their paid up capital to Rs 500 million and non-life companies to Rs 250 million by the end of current fiscal year. NLG Insurance is planning to meet the regulatory paid up capital requirement by issuing bonus and right shares to the shareholders before the end of the current fiscal year.

At present there are 25 insurance companies, 16 non-life insurance companies and nine life insurance companies with Rastriya Beema Sansthan (RBS) that provides both life and non-life service.

Janata Bank's primary issue on April 29

Janata Bank is floating its 60 million units of ordinary shares worth Rs 600 million — the largest Initial Public Offering (IPO) among private commercial banks — at a face value of Rs 100 per unit to the public from April 29.
The capital market is going to see primary issue of a commercial bank after almost two year.
The capital market regulator has already approved the 27th commercial bank's primary issue that will be closed on May 4, if oversubscribed, according to the bank that will continue its primary issue till May 13, if the shares are not fully subscribed within the five days.
The public can submit the forms at 130 collection counters including 23 branches anywhere in the country.
Citizen Investment Trust (CIT), NMB Capital and Civil Capital have been appointed as the underwriter and issue manager of the primary issue that is the largest public offering by a private commercial bank in the country.
Currently, there are 25 listed commercial banks at the stock exchange as Nepal Bank has been delisted. There are four more commercial banks that will be floating their primary issues according to Nepal Rastra Bank's regulation.