Prabhu Insurance to distribute 18% bonus share

Kathmandu, Aug. 8 

Prabhu Insurance Limited has announced the distribution of 18 per cent bonus shares for the last Fiscal Year 2024/25. 

The bonus shares were announced at the company’s 29th Annual General Meeting held in Kathmandu on Friday. 

Despite adverse economic and market conditions, the company achieved its highest-ever profit in the last fiscal year, providing attractive returns to its shareholders, according to Rajendra Malla, Chairperson of Prabhu Insurance. He said that this record profit distribution has reinforced Prabhu Insurance’s position as a stronger and more reliable institution in the market.

According to Malla, the company has been strictly complying with regulatory requirements, while implementing various policy reforms and advancing long-term strategic plans to strengthen internal governance.

Through digital platforms, the company has made the claims settlement process, policy renewals, and other insurance services simpler and more effective, he said. 

Under its corporate social responsibility commitments, the company has prioritised activities that directly engage with society and contribute to the sustainable development of communities such as in health, education, environmental protection, and disaster management.

Published in The Rising Nepal daily on 9 August 2025.

CDSC pushes for dual ISIN system to curb promoter shares misuse in stock market

Kathmandu, Aug. 3 

The CDS and Clearing (CDSC) Limited is on the final stage to implement dual International Securities Identification Numbers (ISINs) to separate the promoter shares and public shares of the companies listed at the stock exchange to protect the interest of the investors. 

With the implementation of the new rules, the promoters can't sell their shares before the conclusion of the lock-in period. Currently, some companies allegedly in hydropower sector are trading promotor shares by merging them with public shares before the end of the lock-in period. 

The newly proposed Share Dematerialisation Directive 2025, which is already endorsed by the CDSC board, seeks to assign separate ISINs and NEPSE trading codes to promoter and public shares of listed companies. This change targets the widespread malpractice where promoters have allegedly sold locked-in shares illegally in the secondary market under a single ISIN, misleading retail investors.

The CDSC has forwarded the directives to the Securities Board of Nepal (SEBON) for final approval.

Once the Directive is implemented, such practices will be blocked, ensuring that lock-in founder shares cannot be traded until the expiry of their restricted period, typically three years.

An ISIN is a unique 12-digit alphanumeric code assigned to the securities – such as shares, debentures and bonds – when they are registered with the depository system such as CDSC in Nepal.

Application of the ISIN will not only create clear differentiation between the promotor and public share but also make it easy to track and analyse trading activity and ownership patterns for both the types of shares thus creating enhanced transparency. 

It will also lead to price differences between promoter and public shares with chances for price hike in public shares since they make a small share – mostly 30 per cent of the total investment in a company. 

However, the dual ISIN system can cause a decline in government revenue due to potential market contraction. 

In a letter to the CDSC on July 28, Nepal Sharemarket Investors Association said that there were examples of promoters shares being traded during lock-in period. "Due to single ISIN number, promoters shares were also traded in bulk while the general investors are confused and sometimes cheated, and the stock market has witnessed an unusual decline due to the supply of securities in a large quantity," read the letter. 

The Association noted that although the countries in the South Asian region have been practicing single ISIN number, they have a strong monitoring and regulatory system. If Nepal could implement the restriction to trade the promoters shares during the lock-in period effectively, single ISIN with flagging code number can also be effective, according to it. 

"Given the current practice and regulatory system, dual ISIN system is appropriate in case of Nepal. We hope that the guidelines created by the CDSC would include this provision," said the Association. 

Likewise, capital market experts have also welcomed the initiative, viewing it as a crucial step in purifying Nepal’s share market. According to them, dual ISINs will prevent price manipulation, protect ordinary investors, and enhance transparency. The separation will ensure that founder shares cannot be disguised and offloaded as ordinary shares during lock-in, addressing one of the key sources of investor distrust.

Managing Director and Chief Executive of the CDSC, Prabin Pandak, said that the newly proposed rules are to apply uniform provisions for all types of companies and shares and to protect the investors interest while also checking the practice of arbitrary decisions of the CDSC itself. 

CDSC statistics are full of differentiated decisions for various companies with some companies having single ISIN and some two while some have already mixed them. 

Pandak said that the move has come after 15 years of regulatory inertia, despite the Central Depository Services Regulation of 2067 mandating the formulation of such procedures. 

However, the directive has faced strong opposition from certain business groups including the Independent Power Producers’ Association of Nepal (IPPAN) and the Nepal Chamber of Commerce. They argued that dual ISINs conflict with the Company Act and international practices, and claimed that it may reduce market liquidity by limiting the supply of tradable shares during the lock-in period, potentially pushing prices upward.

But a share broker said that dual ISINs are already used in Nepal’s banking, insurance, and hospitality sectors. He rejected the claims that the reform will deter foreign investment. 

"On the contrary, a cleaner, rule-based market is more likely to inspire investor confidence. The directive is expected to curb misuse of the conversion process, where some founders have previously bypassed regulations to liquidate shares and exit at the expense of ordinary investors," he said.

The proposed Directive also has a provision to converge the securities with different ISINs for which the respective company's general assembly should decide about it, notice about it should be published in a national paper twice, information should be given to the securities market and obtain approval of the SEBON. 

Published in The Rising Nepal daily on 4 August 2025.

Hotel Siraichuli in Chitwan to issue IPO

Kathmandu, July 23

Hotel Siraichuli Limited of Bharatpur in Chitwan is all set to issue shares to the general public.

The company announced that it has initiated the process to obtain the necessary approvals from regulatory bodies in accordance with the prevailing Securities Registration and Issue Regulations, as well as the Securities Issuance and Allotment Guidelines.

For the purpose of managing the share issuance and sales, the company has appointed Nabil Investment Banking Limited as the issue and sales manager.

Located in Bharatpur Metropolitan City–10, Hotel Siraichuli is a modern four-star hotel, built with contemporary architecture, the company informed in a statement on Wednesday.

It features modern accommodation, a multi-cuisine restaurant, three banquet halls, five boardrooms, an infinity swimming pool, rooftop restaurant, poolside bar, gym, and spa.

Situated in the heart of Chitwan’s bustling urban centre, the hotel provides scenic views of the Himalayan mountain range. According to the company, its elegantly decorated rooms and suites offer a luxurious stay, allowing guests to unwind and rejuvenate during their travels.

Chudamani Khanal, Chairperson of Hotel Siraichuli, and Manish Narayan Joshi, CEO of Nabil Investment, signed the agreement in the presence of the issuing company's Managing Director Bishnu Kunwar and board member Baburam Upadhyaya.

Published in The Rising Nepal daily on 24 July 2025.   

Global IME’s new mutual fund scheme from July 7

Kathmandu, June 3

Global IME Capital Limited is set to open the public issuance of its new mutual fund scheme, 'Global IME Samunnat Scheme 2', from July 7.

The scheme will begin with an initial fund size of Rs. 1.2 billion, with a provision to expand up to Rs. 1.5 billion.

"Designed to offer long-term benefits to investors, the scheme aims to invest in both equity and fixed-income instruments, thereby maintaining a balanced risk profile," the company said in a statement on Thursday.

It is fully operated under the Mutual Fund Regulations 2067, ensuring transparency, investor protection, and efficient fund management.

Key features of the scheme include a closed-ended structure, a face value of Rs. 10 per unit, and a minimum investment requirement of 100 units. Investors can purchase up to 10 per cent of the total fund, equivalent to 12 million units.

Likewise, the scheme will have a tenure of 10 years from the date of unit allotment and will be listed on the Nepal Stock Exchange (NEPSE).

The projected annual average return is 22.49 per cent, translating to an estimated total return of 224.96 per cent over 10 years.

The scheme is also expected to provide annual dividends ranging from 8 per cent to 20 per cent during the first nine years. The expected internal rate of return stands at 16.88 per cent.

Global IME Capital, the scheme manager, was established in 2008 and holding an 81.5 per cent ownership by Global IME Bank. Investors can apply through ASBA member banks and financial institutions or use the online Mero Share platform.

The scheme has received an ICRA NP issuer rating of A- and an INFOMERICS rating of IRN AMC Quality 3 Plus, further ensuring credibility and reliability for potential investors, the company claimed.

Published in The Rising Nepal daily on 4 July 2025.   

HBL to issue 9.25 million units FPO

Kathmandu, June 22

The Himalayan Bank Limited (HBL) is issuing 9.25 million unit shares in Further Public Offering (FPO).

The bank signed an agreement with the Citizens Investment Trust (CIT) to manage the public issuance and underwrite it.

The agreement was signed on Sunday by Parbat Kumar Karki, Executive Director of the CIT, and Ashok Shumsher Rana, Chief Executive Officer of the bank.

Under the agreement, the CIT will underwrite 9,250,469 units of FPO shares to be issued by the bank. The agreement will remain valid for a period of three months from the date of signing.

The bank's 31^st Annual General Meeting in January 2024 had decided to authorise the Board of Directors to issue additional ordinary shares to maintain the promoter and public shareholders shareholding ratio at 70:30. Following the approval from the central bank, the HBL has proceeded with the FPO.

Currently, the bank has 27.01 per cent public shareholders. According to the Banks and Financial Institutions Act, it must have it at 30 per cent.

Established in 1993 as a joint venture of Habib Bank Limited of Pakistan, the bank is offereing its services through 174 branch offices and 20 extension counters across the country.

It also provides remittance service through online money transfer software – HimalRemit. 

Published in The Rising Nepal daily on 23 June 2025. 

Prabhu and Chhimek open sale of promoter shares

Kathmandu, June 17

Prabhu Bank Limited and Chhimek Laghubitta Bittiya Sanstha Limited have opened the sale of their promoter shares.
Sealed bids have been invited from Tuesday for the sale of 9,882 shares of Prabhu Bank and 244,480 shares of Chhimek Laghubitta – a microfinance institution.
The companies have set a minimum price of Rs. 100 per share for Prabhu and Rs. 390 per share for Chhimek through auction.
Interested bidders must apply for a minimum of 1,000 shares of Prabhu and 50,000 shares of Chhimek before June 24. Applications should be submitted to the sales manager, Muktinath Capital Limited.
According to the companies, individual or institutional bidders must submit, along with the application form, a copy of their registration certificate (in case of institutions/companies), tax clearance certificate, a copy of the board decision authorising the purchase of shares, and documents verifying that the institution has been operating at a profit for the past two fiscal years.

Published in The Rising Nepal daily on 18 June 2025. 

Curb insider trading, market manipulation, DPM Paudel tells SEBON officials

Kathmandu, June 8

Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel has sought urgent and qualitative reforms in Nepal’s capital market.

Addressing the 33^rd anniversary programme of the Securities Board of Nepal (SEBON) in Lalitpur on Sunday, he said, "Do not fall into the trap of middlemen. Work independently, resist pressure, and reinforce SEBON's regulatory authority with integrity.”

According to him, the capital market regulator should work to curb insider trading and market manipulation and the market environment should be transparent and beyond reproach.

“Insider trading, undue influence, and opaque practices must be eradicated to win investor confidence,” he said while stressing the need to embrace new financial instruments and technologies, echoing international trends.

DPM Paudel also direct SEBON officials to act decisively, strengthen SEBON’s role as a regulator and punish wrongdoers while rewarding merit.

Speaking on the occasion, Revenue Secretary Dr. Ram Prasad Ghimire indicated that legal reforms are underway but fell short of addressing growing frustration over legislative delays. Board's Acting Chair Narendra Kumar Rana, also representing the Ministry of Finance, highlighted the urgent need to appoint a full-time chair and modernise regulatory frameworks.

Meanwhile, union leaders within SEBON voiced sharp discontent.

Ajaya Dhungana, President of SEBON’s Employees’ Union, likened the current state of the regulator to the metaphor of a 'dead horse', a body being kept alive in name only, while critical reforms are ignored.

He criticised the lack of autonomy, absence from international forums, and persistent regulatory ambiguity. “The Board is being reduced to an implementing unit for directives from elsewhere,” he said, calling for a Capital Market Reform 1.0 agenda with updated laws, empowered structures, and genuine independence.

Employees’ grievances also included the Finance Ministry’s two-year delay in approving SEBON’s employee service regulations and a lack of professional development. “We are not demanding privileges, we are demanding respect and functionality,” said Dhungana.

Likewise, President of Independent Employees' Union of SEBON, Narayan Paudel Nepal expressed commitment to cooperating with senior management, but stressed that trust, transparency, equal treatment and fairness are key for meaningful collaboration.

“We are ready to work shoulder-to-shoulder, but only if there is a culture of listening and understanding,” they said. Expressing concern over recent reports involving the board chairperson, the union urged clarity to dispel fear and reaffirmed the need to uphold justice beyond paperwork.

SEBON Chairman Santosh Narayan Shrestha expressed commitment to implementing reforms in the sector. 

Published in The Rising Nepal daily on 9 June 2025. 

Kantipur Pharmaceuticals to issues shares for public

Kathmandu, May 27

Kantipur Pharmaceuticals Lab Limited is set to issue its Initial Public Offering (IPO).

It signed an agreement with Elite Capital Limited for the underwriting of the shares on Tuesday.

A formal agreement was signed between the capital and the company for the same. The agreement was signed by Navaraj Paudel, Managing Director of Kantipur Pharmaceuticals, and Dinesh Acharya, Executive Chairman of Elite Capital.

Elite has underwritten 1.7 million ordinary shares worth Rs. 170 million. Kantipur has a paid-up capital of Rs. 630 million.

Kantipur Pharmaceuticals has submitted an application to the Securities Board of Nepal (SEBON) – the capital market regulator, to issue the IPO. Muktinath Capital is acting as the issue manager.

The shares will be issued at a face value of Rs. 100 per unit.

Established in 2018, the company is engaged in research, production, and distribution of veterinary medicines and nutritional supplements for animals and birds.

Currently, the company has received production approval for 61 pharmaceutical products from the Department of Drug Administration. Among them, 13 products have obtained marketing authorisation and are currently being sold in the Nepali market.

The company said that the process is ongoing to obtain marketing authorisation for the remaining products. Additionally, the company is also producing and distributing 21 other nutritional supplements.

Published in The Rising Nepal daily on 28 May 2025. 

Risk weight for margin lending to be dropped to 100%

Kathmandu, May 25

The Nepal Rastra Bank (NRB) has said that the existing risk weight for margin lending (loan against shares) would be reduced from 125 per cent to 100 per cent.

The central bank has pledged this policy amendment in the third quarterly review of the Monetary Policy of the current Fiscal Year 2024/25 published on Sunday.

Considering the liquidity situation in the financial system and reforms made by the central banks in the tools used in open market operations, arrangements would be made for financial institutions to maintain a daily minimum cash reserve of 90 per cent of their total deposits and other financial resources.

The current provisions regarding mandatory cash reserves and statutory liquidity arrangements have been maintained.

Likewise, the existing lower and upper limits of interest rate corridor – 3.0 per cent for deposits and 6.5 per cent for bank rate – as well as 5.0 per cent policy rate is kept intact.

The NRB also said in the review that with the aim of improving the investment climate, provisions including the Foreign Exchange (Regulated) Act, 2074 and the Foreign Investment and Technology Transfer Act, 2075, along with subsequent amendments, have been incorporated to issue 'Nepal Rastra Bank Foreign Investment and Foreign Loan Management Bylaws, 2078'.

"Work is being carried out to formulate a policy framework to criminalise cheque bouncing under the Banking Offence and Punishment Act, 2064," read the report.

To maintain inflation within the desired range of 5 per cent, the monetary policy aimed to control the expansion of money supply. As a result, as of nine months, consumer price inflation stands at 4.57 per cent, said the NRB.

"The current account remains in surplus due to a significant increase in foreign exchange remittances. As of nine months, the forex reserves are sufficient to cover the import of goods and services for 14.2 months," read the report. 

Published in The Rising Nepal daily on 26 May 2025. 

KSBB to issue 3.5 million preference shares

Kathmandu, Jan. 26

Kamana Sewa Bikas Bank Ltd. has announced plans to issue non-redeemable, non-cumulative preference shares with a 9 per cent annual dividend. The bank will issue 3.5 million shares with a face value of Rs. 100 each, amounting to Rs. 350 million.

The class 'B' bank has appointed NIMB Ace Capital Limited as the issue and sales manager to manage the issuance and sales process.

"The preference shares, aimed at enhancing the bank’s supplementary capital, will carry a fixed annual dividend of 9 per cent," the bank informed in a statement. As these shares are non-redeemable, no maturity period has been specified, and they will be issued by circular - through a private placement process.

The agreement regarding the issuance was signed by the bank's CEO, Dinesh Thakali, and NIMB Ace Capital's General Manager, Sachindra Dhungana.

 Published in The Rising Nepal daily on 27 January 2025.  

Elite launches 'Doctors PMS' service

 Kathmandu, Jan. 16

Elite Capital Limited has launched a special scheme called ‘Doctors PMS’ under its Investment Management Services. The merchant banker company informed in a statement that the initiative is designed to assist healthcare professionals in navigating and investing in the stock market.

According to Omkar Mani Acharya, Chief Business Officer of the company, the scheme requires a minimum investment of Rs. 500,000 or an equivalent value in shares.

The service is offered with no annual service charge but profits generated from investments will be distributed on a 90-10 basis, with 90 per cent allocated to investors and 10 per cent to Elite Capital. "Investors can withdraw their profits on a quarterly basis or at their convenience, and there is no upper limit on the amount they can invest," read the statement.

As part of the scheme, healthcare professionals and their families will receive complimentary Demat accounts and access to the Mero Share service, as well as free insurance coverage.

The company also informed that participants will have access to free training on stock market investment and complimentary consultation services. The scheme is open to doctors and all professionals affiliated with healthcare institutions.

 Published in The Rising Nepal daily on 17 January 2025. 

Non-life insurance association draws SEBON’s attention to ‘impractical’ regulation provision

Kathmandu, Dec. 22

The Non-Life Insurance Association of Nepal has drawn the attention of the Securities Board of Nepal (SEBON) to a provision barring directors of the non-life insurance companies from selling their shares in the respective institutions for one year after resigning.

According to Regulation 38 (1a) of the Securities Registration and Issuance Regulations, 2079, directors are prohibited from buying or selling shares of the concerned company during their tenure and for a year following their departure.

In a statement issued on Sunday, the association has termed this rule 'impractical'.

"The provision regarding the sale of shares is extremely impractical. Directors, like other shareholders, are investors who represent shareholders in the board of directors. Restricting their ability to sell shares solely on this basis is unjust," read the statement.

A delegation led by the association's president, Rajendra Malla, who is also the former president of the Nepal Chamber of Commerce, met SEBON Chairperson Santosh Narayan Shrestha on Sunday to request an amendment to the provision.

Malla said that from an investment perspective, there is no difference between the financial interests of directors and other shareholders. The association also argued that directors, being shareholders themselves, should not be deprived of utilising their investments like others.

Malla further stated that prohibiting a businessperson from selling movable assets could hinder diversification efforts, entrepreneurial activities, and even essential household financial needs.

The association informed in the statement that it proposed the regulation be amended to allow directors to sell up to 50 per cent of their shareholding while still holding their position. It noted that the current restriction not only hampers the investment climate but could also negatively impact foreign investment prospects.

"Restricting any individual from buying or selling shares for a year after leaving their position is unreasonable. This provision should be revised to facilitate a more favourable investment environment," the statement read.  

Published in The Rising Nepal daily on 23 December 2024.   

Sagar Dhakal elected SBAN President

Kathmandu, Dec. 7

Sagar Dhakal has been elected as the President of the Stock Brokers Association of Nepal (SBAN). He defeated his rival Rajkumar Timilsina in the election organised on Friday.

Initially, there were expectations that the SBAN presidency would be decided unanimously but disagreements among the candidates resulted in the election being conducted.

Dhakal secured victory by receiving 45 out of 88 votes, narrowly beating Timilsina, who garnered 43 votes.

Likewise, Nitesh Agrawal is elected as the Vice President of SBAN, Bhakti Ram Ghimire as General Secretary, Madan Poudel as Treasurer and Binay Poudel as Secretary.

Bishal Kumar Agrawal, Jelina Kandel, Jayant Srivastava, and Priyanshu Agrawal have been elected as members of the executive committee.

This election happened after the merger of the erstwhile two associations of the security brokers - the Stock Brokers’ Association and the Securities Brokers’ Association.

The merger agreement was signed by Dharma Raj Sapkota, Chairman of the Stock Brokers’ Association, and Sagar Dhakal, Chairman of the Securities Brokers’ Association about three weeks ago. The association retained the name of SBAN following the merger. 

 Published in The Rising Nepal daily on 8 December 2024.  

Union Mewa to issue IPO

 Kathmandu, Dec. 6

Union Mewa Hydro Limited is set to issue the Initiation Public Offering (IPO) of shares equivalent of Rs. 353 million. The company will issue 3.5 million shares with the unit price of Rs. 100 to the public, it informed in a statement on Friday.

The company has appointed Laxmi Sunrise Capital Limited as the issue manager of the IPO.

Bijay Lal Shrestha, CEO of the Capital, and Kiran Malla, Chairman of Union Mewa, signed an agreement appointing the issue manager.

Union Mewa is currently constructing the 23 MW Mewa Khola Hydropower Project in Mikwa Khola Rural Municipality of Taplejung district.

According to the company, about 35 per cent of the construction of the project is completed.

 Published in The Rising Nepal daily on 7 December 2024.  

Stock Brokers’ Association, Securities Brokers’ Association sing merger deal

Kathmandu, Nov. 14

A merger agreement has been signed between two broker associations of Nepal - Stock Brokers’ Association and the Securities Brokers’ Association. The agreement was signed by Dharma Raj Sapkota, Chairman of the Stock Brokers’ Association, and Sagar Dhakal, Chairman of the Securities Brokers’ Association.

The merger committees from both associations also played a key role in this agreement. On behalf of the Stock Brokers’ Association, former Chairman Santosh Raj Mainali led the committee as coordinator, with members Madan Poudel and Suyog Adhikari. On behalf of the Securities Brokers’ Association, General Secretary Krishna Giri coordinated the committee, with members Suman Kumar Malla and Sandeep Bikram Rana.

Following the merger, the combined entity will operate under the name Stock Brokers’ Association of Nepal (SBAN).

Speaking on the occasion, Dhakal emphasised the need for unification to address recent discrepancies in the stock market and to foster its development and expansion.

"The polarisation that emerged between new and old securities businesses after the licensing of new securities traders two years ago has come to an end with this historic understanding. This will undoubtedly guide the key stakeholders in a new direction. I firmly believe that this merger will enhance our professionalism and create a united front to protect our rights and interests," he said.

Dhakal also expressed his commitment to work collectively as one organisation, prioritising the growth, expansion, and security of the capital market while safeguarding investors' interests. He noted that the Securities Act, for the first time in approximately 23 years, is being amended, and the merged entity aims to play a significant role in making the law more business- and investor-friendly.

“There are still numerous provisions required to elevate our capital market to international standards, which have not been included in the current draft. Though laws should be amended continuously and regularly, many critical aspects have been overlooked. Hence, we must engage with all stakeholders to push for necessary amendments,” he stated.

Dhakal underscored the urgency of developing essential market infrastructure and investment tools, such as intra-day trading, short selling, equity derivatives and index funds. 

Published in The Rising Nepal daily on 15 November 2024.  

Everest Colour Limited to issue shares to public

Kathmandu, Oct. 27

Everest Colour Limited, a paint manufacturing company, is planning to issue shares to the general public soon. The company’s Board of Directors has decided to present the proposal for the Initial Public Offering (IPO) at the general meeting scheduled for November 16 this year.

If the IPO is issued as planned, Everest Colour will become the first among paint manufacturing companies in Nepal to do so. The company, which has a paid-up capital of Rs. 260 million, intends to issue 15 per cent of its shares to the public. This means 390,000 shares, valued at Rs. 39 million, will be available for public purchase.

Additionally, at the upcoming general meeting, the company will elect five directors to represent the founding shareholders on its management committee.

 Published in The Rising Nepal daily on 28 October 2024. 

NIFRA to issue Energy Bond

Kathmandu, Oct. 17

Nepal Infrastructure Bank Limited (NIFRA) has appointed NIMB Ace Capital Limited as the issue manager for its upcoming 'NIFRA Energy Bond 6% (2088/89)'. "This new bond issuance aims to bolster the country’s energy infrastructure, a crucial element for Nepal’s economic growth," the company said in a statement issued on Thursday.

The NIFRA Energy Bond will feature a 6 per cent interest rate and a validity period of seven years, with a total issuing size of Rs. 5 billion. After getting approval from the Securities Board of Nepal (SEBON), 60 per cent of the total shares will be allocated for private placement, allowing selected investors to participate, while the remaining 40 per cent will be available to the general public, the company said.

According to NIFRA, the bond issuance is expected to bolster the energy sector, enhance financial inclusion and provide a secure investment avenue for both institutional and individual investors.

It also expressed its commitment to facilitating infrastructure development in Nepal, offering a range of financial services tailored to meet the needs of both public and private sectors.

 Published in The Rising Nepal daily on 18 October 2024. 

Daunne Agro prepares for IPO

Kathmandu, Oct. 15

Daunne Agro Farm Limited (DAFL) is all set to issue its shares to public and appointed Citizens Capital Limited (CCL) the sales manager for the Initial Public Offering.

Binod Pokharel, Executive Director of DAFL, and Sabir Bade Shrestha, Chief Executive Officer of CCL, signed an agreement for the same.

Established eight years ago, DAFL is the largest egg production company in Nepal. It has been producing 1,700 cartons of 'antibiotic-free' and quality eggs per day from 400,000 layers of chickens and selling them in most of the urban, semi-urban and tourist areas of the country, the companies informed in a statement on Tuesday.

The farm aims to produce 2,600 cartons of eggs per day from a total of 600,000 chickens in the future. DAFL is situated in Sardi of Binayi Triveni Rural Municipality-3 in Nawalparasi (East).

Nepal Opportunity Fund-1 under Adhyanta Fund Management Limited also has an investment in that company.

CCL will provide consultation to the company regarding the shares issuance, and manage the IPO after getting the approval from the Securities Board of Nepal.

 Published in The Rising Nepal daily on 16 October 2024. 

Crest Micro Life Insurance Limited issuing shares

Kathmandu, Sept. 3

Crest Micro Life Insurance Limited is in the process of issuing shares to the general public. It has RBB Merchant Banking Limited as the issue manager. The two companies signed an agreement on Monday. Crest also signed another agreement with the RBB Mutual Fund-1.

Crest has received ICRA double B rating from ICRA Nepal Limited, a credit rating organisation. According to ICRA Nepal, the company receiving such a rating is considered to be moderately safe in terms of meeting its financial obligations on time, the company said in a statement.

"Although the company managed to make a profit within a short period of its establishment, the rating is affected by the operational, management and risk assessment expenses in the initial years," read the statement.

According to the company, in the near future, business expansion including business diversification, quality investment and controlled claim payment process will have a positive impact on the rating.

The company is going to issue 2.2 million units of shares amounting Rs. 225 million - about 30 per cent of the company's issue capital Rs. 750 million. Unit price of each share is Rs. 100.

Crest Micro Life is a company registered as a public company in the office of the Registrar of Companies, and established in accordance with the Insurance Act, 2079 and Insurance Regulations, 2049, with the aim of providing micro life insurance services to the residents of low-income, middle class and backward areas, and the people of marginalised communities.

It's in operation for the last one and a half years. It is offering its services from 23 branches and sub-branches. 

Published in The Rising Nepal daily on 4 September 2024.        

GIAN seeks correction of strict provisions on share sales

Kathmandu, Sept. 3

The General Insurance Association of Nepal (GIAN) has drawn the attention of the Securities Board of Nepal(SEBON) to the provision that the shares owned by the directors of the company cannot be sold for one year.

According to rule 38(1a) of the Securities Registration and Issue Regulation, 2079, the arrangement that the directors cannot buy and sell the shares of the related company during their tenure in office or for one year after they have retired from such office is impractical, they said.

"We would like to inform that the provision related to the sale of shares is very strict. It is not fair to discriminate against them so harshly as the directors are also investors like all the remaining shareholders in the company and they are elected by the general meeting of the shareholders and represented in the board of directors on their behalf," the GIAN said in a statement on Tuesday.

A team of GIAN led by its President Rajendra Malla which included Vice-president Manohardas Mul, General Secretary Mahendra Krishna Shrestha, Treasurer Ramesh Niraula and members Azad Shrestha and Kunal Kayal requested Chairman of the SEBON, Mahesh Baral to correct that provision.

"From the point of view of investment, there is no difference between the financial interests of the other shareholders of the company and the financial interests of the directors," said Malla.

The association has mentioned that depriving the directors of using the investment they made in the company like other shareholders is not fair.

Malla also said that if a businessperson cannot sell his movable property, there will be an obstacle in the diversification of business and essential household work.

The NGIA has requested the SEBON to make a new provision that would allow the selling of up to 50 per cent of the share ownership while holding the position of director. 

Published in The Rising Nepal daily on 4 September 2024.