Senior economist Prof Dahal no more

Senior economist Prof Dr Madan Kumar Dahal passed away today at the age of 71 while undergoing treatment at Kathmandu Medical College (KMC).
Dahal, who taught for about four decades at Tribhuvan University (TU), was suffering from pancreas-related disease since long. Dahal, also the former president of Nepal Economic Association (NEA), had written a number of books on economics and was a well-known fearless and unbiased economist, who always analysed Nepali economy without any bias, though Nepali intellectuals are blamed to be biased towards the government with the ideology they believe in.
Born on 2004 Falgun 17, Prof Dahal was also a revered teacher of thousands of students, many of whom are now retired secretaries, professors and diplomats, apart from incumbent highly placed government officials.
“I lost my closest friend Professor Madan Kumar Dahal at 1:00pm today with whom I had my professional journey for four-and-a-half decades," Prof Dr Bishwambher Pyakuryal – ambassador of Nepal to Sri Lanka and his long time colleague – following Dahal’s demise wrote on his Facebook wall. "My prayers to the Almighty for accessing his soul in heaven. May God give strength to his wife Neera baini to bear such a great loss," he further wrote, "Dahal has an unforgettable place in Nepal’s economic history."
Prof Dahal, who was also the guardian of Karobar National Economic daily, was founding chairman of Mega Bank Nepal. Due to his ailing health condition, Dahal took rest after 6 years as the chairman in Mega Bank.

Mega Bank Nepal lists shares, trading starts from next Sunday

Mega Bank Nepal listed its shares at the Nepal Stock Exchange (Nepse) today.
The shares will be traded from next Sunday as according to the regulation, the shares could be traded after a week of registration.

According to the regulation, shares can debut anywhere between the bank’s per share net worth and three times the net worth.
According to the bank’s fourth quarter statement of the last fiscal year 2012-13, its net worth stands at Rs 114.24 meaning its share will debut anywhere between Rs 114 and over Rs 300. But the market price of the similar banks also impacts its price.

The 28^th commercial bank has floated the largest Initial Public Offering (IPO) of 6.99 million units worth Rs 699 million on June 2-5 and has also witnessed an over-subscription by 22 times. The bank had received 160,524 applications worth Rs 14 billion. But some 144,456 applicants got shares, making it the highest number of shareholders, apart from 1,219 promoter shareholders.

Mega Bank allottes primary shares to 144‚456 public

Mega Bank Nepal today allotted ordinary shares to 144,456 people, from the total 162,262 applicants.
The 29^th commercial bank of the country had floated 6.99 million units of primary shares worth Rs 699 million, which was oversubscribed by 22 times to Rs 14.22 billion.

Chief executive officer of the bank Anil Keshary Shah said that the bank will be giving good return to the shareholders.
Likewise, chairman of the bank Prof Dr Madan Kumar Dahal said that the bank with 144,456 shareholders initially has 1,219 promoters.

The bank has been providing banking services through 28 branches across the nation as well as 45 hi-tech branchless banking outlets.

The bank that was established three years ago, had floated the ordinary shares to the public from June 2 to June 5.

ALSO READ: http://businessjournalist.blogspot.com/2013/06/mega-banks-ipo-oversubscribed.html

ALSO READ: http://businessjournalist.blogspot.com/2013/05/mega-bank-nepal-reduces-upper-limit-to.html

Mega Bank's IPO oversubscribed

Mega Bank Nepal’s Initial Public Offering (IPO) has been oversubscribed by over 22 times the size of the offering.

"The IPO received applications for shares worth above Rs 14.22 billion from 125,000 applicants, according to preliminary reports," informed chief executive of the bank Anil Keshary Shah, calling the success of the IPO ‘a mega achievement’.

The bank had offered ordinary shares worth Rs 699 million at a face value of Rs 100 per unit for the public from June 2, which was open till today. An investor was allowed to apply for a minimum of 50 units and a maximum of 200,000 units. The shares will be allotted proportionately based on the total number of applications received.

The bank had received 75,000 applications and collected Rs 6.33 billion by the third day of the IPO. On the fourth and last day, it has received around Rs 8 billion from around 50,000 applicants.

"The success of the IPO is an indication that Mega Bank is in the right path in its belief of financial inclusion for economic upliftment," said Shah.

Mega Bank had appointed Citizens Investment Trust, Nabil Investment, NIBL Capital and NMB Capital as issue managers for the IPO. It will be the 30th commercial bank to be listed at Nepal Stock Exchange )Nepse) that is dominated by banks and financial institutions.

Mega Bank Nepal, which started operations on September 2010, has a paid up capital of Rs 1.63 billion, which will increase to Rs 2.33 billion after the shares are issued. The bank had earned Rs 130 million in the third quarter of the current fiscal year.

Three months back Commerz and Trust Bank Nepal’s IPO worth Rs 600 million was oversubscribed by 12 times the size.
Likewise, Civil Bank’s IPO worth Rs 800 million, held in December, was oversubscribed by almost seven times as investors had applied for shares worth Rs 5.4 billion.

Mega Bank Nepal reduces upper limit, to float IPO from June 2

Mega Bank Nepal that is floating the ordinary shares to the public from June 2 to June 5 has reduced the maximum limit for the Initial Public Offering to 200,000 units shares at a face value of Rs 100, which comes to Rs 20 million, unlike the earlier offerings of 20 million to give the chance for maximum investors.

According to the chairman of Mega Bank Prof Dr Madan Kumar Dahal the bank will be issuing 6.99 million units of ordinary stock at Rs 100 per share unit face value worth Rs 699 million through the IPO to the general public, which is 30 per cent of the bank's issued capital of Rs 2.33 billion. “The 29^th commercial bank has succeeded in leaving a remarkable mark in the financial sector despite challenging circumstances like political instability, recession in the industrial and business sector and cut throat competition, only because of the confidence and trust shown by the general public towards the bank,” he added.

On the occasion, the chief executive of the bank Anil Keshary Shah assured the investors to to confidently invest in the shares of Mega Bank.
“We will try our best to allocate the shares in the most convenient way to all the applicants who are willing to buy the shares of our Bank,” he said, adding that the bank expects that there will be a high demand of our shares in the market.
The bank has already launched a deposit product ‘Mega IPO Savings Account’ for the convenience of those interested to invest in the bank's shares. “The account can be opened with a minimum balance of Rs 5,000 and is a savings account paying six per cent interest per annum (payable quarterly),” Shah added. “The amount applied for in the IPO can be paid conveniently through the account and in future direct transfer of dividend into the account is also possible in addition to trading of the shares through the secondary market after the listing in the stock exchange.”

The bank has jointly appointed Citizen Investment Trust, Nabil Investment Banking, NMB Capital and NIBL Capital Markets as its issue managers for initial public offering.
Mega Bank Nepal – established by 1,219 Nepalis of 63 districts – started its operations from July 23, 2010. It has 28 branches, apart from Mega Remit in 500 different locations and 45 hi-tech branchless banking outlets in rural parts.

Likewise, the bank is providing loans to agriculture, Small and Medium Enterprises (SMEs), tourism, energy. The authorised capital of Rs 4 billion and issued capital of 2.33 billion makes Mega Bank one of the largest capitalised banks in the nation, he added.

It has succeeded in recording a net profit of Rs 130 million in the third quarter of the current fiscal year against Rs 71.80 million in the previous fiscal year.
The bank has a total deposit of Rs 12.84 billion and a total loan portfolio of Rs 11.87 billion.

Commerz and Trust Bank Nepal to float primary shares from February 17

Commerz and Trust Bank Nepal (CTBN) will issue six million units of primary shares worth Rs 600 million at a face value of Rs 100 per unit from February 17 to February 21.

Of the total, some 300,000 units have been bought by Siddhartha Mutual Fund and Citizens Units, according to the capital market regulation. Likewise, some 300,000 unit shares will be for employees of the bank. The bank will allot the remaining 5,400,000 unit shares to the general public.

"Buying Commerz and Trust Bank's share will be profitable for both short-term and long-term sustainable returns," said chief executive of the bank Anal Raj Bhattarai.

The bank, with 13 branches, has low operating cost, he said, adding that it is planning to add three more branches, one each in Rolpa, Birgunj and Baneshwor of Kathmandu, soon. "It posted a profit of Rs 65 million in the second quarter of the current fiscal year."

CTBN had recently held interactions with potential investors in Birgunj, Biratnagar, Pokhara, Butwal and Dharan to inform them of the bank's primary shares. "We have received overwhelming response from potential investors," Bhattarai added. "They are more aware of the primary issues and bank's financials, which is a good sign for the progress of the capital market."

An investor can apply for a minimum of 50 unit shares and to a maximum of 1,500,000 units, but the bank will distribute shares proportionately on the basis of total amount of applications, according to the new regulation.

Commerz and Trust Bank Nepal, which started operations on September 20, 2010, with a paid up capital of Rs 1.40 billion — as the 29th commercial bank of the country — will have a paid up capital of Rs 2 billion after the shares are issued.

The market will see Mega Bank and Century Commercial Bank's primary issue after Commerz and Trust Bank Nepal that will be listed as the 29th commercial bank at Nepse after its shares are alloted to the public.