Ridi Hydropower gers Sebon nod to go public

The banks and financial institution dominated-Nepal Stock Exchange (Nepse) is going to get sixth hydropower company that is expected to shift the domination towards the hydropower slowly.

As the Securities Board of Nepal (Sebon) today approved Ridi Hydropower Development Company's application to float 1.1 million units of ordinary shares to the public within the next two months, the stock market might be reenergised.

The Ridi Khola Hydropower project operating since October 2009 has earned Rs 21.2 million profit in the last fiscal year. The 2.4–MW hydropower company had issued 300,000 unit stocks to affected locals of Palpa and Gulmi districts in October 4. Promoted by Arun Valley Hydropower – another Nepse-listed hydropower company – the hydropower has been assigned ‘IPO Grade 3’ credit rating to the Initial Public Offering (IPO) – that indicates average fundamentals – by the credit rating agency Icra Nepal.

Currently, five hydropower companies – National Hydropower Company, Butwal Power Company, Arun Valley Hydropower Company, Chilime Hydropower Company and Sanima Mai Hydropower –  have listed their stocks at the Nepse under hydropower sub group that shares around seven per cent of the total market capitalisation.

Sanima Mai listed at the stock exchange

Sanima Mai Hydropower became the fifth hydel project to be listed at the Nepal Stock Exchange as the company listed Rs 1.05 billion worth 10,550,000 units of share at a face value of Rs 100 per unit.

The listed shares will be traded in a week – from next Tuesday – according to the regulation. The share of the fifth hydropower company at the Nepse is expected to open between Rs 100 to Rs 300 per unit.

Sanima Mai Hydropower is developing two hydropower projects with an aggregate capacity of 29 MW, including the 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.

On September 20, 2013, Sanima Mai Hydropower had floated 2.11 million units of primary shares to the public.

The public issue managed by NIDC Capital that was closed on September 24 had seen some 29 times oversubscription to Rs 6 billion.

The hydropower's IPO that was rated ‘[ICRANP] IPO Grade 3’ by Icra Nepal is promoted by NRNs with 70 per cent, locals of Ilam 10 per cent and general public with 20 per cent shares.

Earlier in July 2013, Sanima Mai Hydro had allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts. The locals have the lock-in period of three years, unlike the general public meaning they cannot sell their shares before three years.

Nepal Stock Exchange has already listed National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower that share around six per cent of the total market capitalisation of the listed companies.

Nepal Investment Bank becomes the largest bank in terms of paid up capital

Nepal Investment Bank Ltd (NIBL) has become the largest bank in terms of paid up capital.

The bank's capital base reached Rs 4.14 billion – after today's 27^th AGM's approval of 10 per cent bonus share proposed for the fiscal year 2012-13 –  which is the highest capital base amongst the private sector banks in the country, the bank said, adding that the capital base is more than twice the minimum capital base prescribed by the central bank.

The bank had earned Rs 3.10 billion operating profit – before provision compared to a fiscal year ago’s Rs 2.10 billion – in the fiscal year 2012-13, it said, adding that the net profit also grew by 84.3 per cent – by Rs 875.75 million – to reach Rs 1.91 billion against a year ago's Rs 1.03 billion.

The board of directors had proposed 10 per cent bonus share (Rs 376.80 million) and 25 per cent cash dividend (Rs 942 million) from the net profit of last fiscal year, when the deposits increased by 9.5 per cent to Rs 62.42 billion, against a fiscal year ago’s Rs 57.01 billion. "Similarly, total lending of the bank also grew by 11.2 per cent to Rs 47.70 billion from a fiscal year ago’s Rs 42.90 billion.

The bank has also reduced it non-performing loans (NPAs) to 1.91 per cent from 3.32 per cent a year ago.

With 500,000 customers across the country and 44 branches and 73 ATM networks, Nepal Investment bank has also been rated 'A' grade by the Indian Credit Rating Agency (ICRA) – for last four years – that reflects the bank's strong creditworthiness and dependability as the leading bank in Nepal.

Century Commercial Bank gets Sebon green signal to go public

Securities Board of Nepal (Sebon) has granted permission to Century Commercial Bank for the Initial Public Offering (IPO).

The commercial bank will float Rs 920 million worth – the largest IPO among the commercial banks – primary shares to the public.

After the IPO – that is expected by the first week of January – the bank will have Rs 2 billion paid up capital as currently it has Rs 1.08 billion paid up capital.

ICRA Nepal had already assigned Century Commercial Bank’s proposed IPO a rating of below-average – as according to the rule, the bank cannot float share without being rated by ICRA Nepal – due to the bank’s limited track record, lack of diversity in earnings, low seasoning of credit book and inferior deposit profile compared to industry systemic average, low profitability, competition from other commercial banks and uncertain operating environment.

However, Century Commercial Bank has lower exposure to real estate lending compared to industry average with comfortable assets quality indicators, the ICRA said.

According to the central bank's current policy, Century Commercial Bank could be the last commercial bank to float primary share.

The bank has posted Rs 35 million operating profit in the first three months of the current fiscal year.

It will be the 32^nd listed commercial bank at the Nepal Stock Exchange (Nepse).

NCM Merchant Banking allots Sanima Mai Hydro's public shares

NCM Merchant Banking today allotted primary shares of Sanima Mai Hydropower.

The small investors were allotted some 3.65 per cent, whereas the big investors received some 2.97 per cent of their request to subscribe.

The investors, who applied for up to 240 units of shares were allotted 10 units of shares through lottery as they would get less than 10 units under the proportionate system.

Sanima Mai Hydro had floated 2.11 million units of primary shares to the public at a face value of Rs 100 per unit on September 20-24.

Some 66,333 applicants – except 113 staff and three Mutual Funds – applied for 60,260,968 units of shares, said the issue manager NCM Merchant Banking that has closed the issue on September 24 after it was oversubscribed by around 31 times.

Of the total 66,333 applications, only 65,752 applications were valid, including 48,559 application from the small investors, the issue manager said, adding that the investors will get their cash refund after Tihar festival.

Sanima Mai will be the fifth hydropower company to be listed in the Nepal Stock Exchange (Nepse) that already has four hydropower companies –National Hydropower, Butwal Power, Arun Valley Hydropower and Chilime Hydropower – under hydropower sub group.

The 22-MW hydropower project's IPO that was rated ‘[ICRANP] IPO Grade 3’ by Icra Nepal was already been allotted Rs 105 million worth shares to the locals of the project affected areas in nine VDCs of Ilam districts in July.

Following the current public issue, the hydropower will have Rs 1.05 billion paid up capital.
Promoted by Non-Resident Nepalis (NRNs) Sanima Mai is developing two hydropower projects with an aggregate capacity of 29 MW, including A 22-MW Phase I project that is expected to commission in July 2014 and 7-MW Phase II project that is expected to commission in July 2015.

The promoters have 70 per cent, locals of Ilam 10 per cent and 20 per cent shares now belong to the general public after the public issue.

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