Kasthamandap Development Bank, established under Company Act 2063 and operating under the provisions of Bank and Financial Institution Ordinance 2063 is licensed as B class Bank from Nepal Rastra Bank. The Bank is offering its Ordinary shares to General Public as IPO valued of Rs.960,000,000 (Divided in 960,000 Shares of Rs.100 each) From 2066/8/02 ¿ 2066/8/5 (Sooner) or to 2066/8/16 ( Later). With this issue, the Paid up capital of the bank will reached to Rs.320 Million. Well, if you are planning to apply for the IPO of this Bank then some of the below financial facts will be of great help to you. ( in '000)
Particulars 2064/65 2065/66 (Unaudited) 2066/67 (Projected) 2067/68 (Projd)
Paid Up capital 224,000.00 224,000.00 640,000.00 1,280,000.00
Reserve & Surplus 269.00 6,787.00 27,050.00 110,294.00
Unamortized Expenses (1,283.00) - -
Book Net worth 222,986.00 230,787.00 667,050.00 1,390,294.00
No. of Shares (' 000) 2,240.00 2,240.00 6,400.00 12,800.00
Per Shares Networth 99.54 103.03 104.23 108.62
Net Profit 269.00 6,518.00 20,403.00 83,244.00
EPS 0.12 2.91 3.19 6.50
Returned On Networth (%) 0.12 2.82 3.06 5.99 Observing the Bank profit for past 2 years and its projection for the forth 2 years, Bank has and won't seem to be able enough to earn handsome profit. But thanks to the Management team for being able to keep the Reserve and Surplus in positive figure in the early years too. In F\Y 2066/67, Bank has projected the profit of Rs.20, 403, which is 213.03% higher than this years profit. EPS too is projected to be 104% high, but these surged figures can't be termed as satisfactory in comparison to 185.71% increase in paid up capital.What can we expect from this Bank?If you are a profit hunter and you are applying the shares just for future cash inflow and little more of bonus shares then it's not the Bank you are looking for. With its projection, this Bank won't be able to return any handsome cash or pleased the shareholders with bonus shares. But if you're interested in holding its scrip to get the number multiplied with right issues then definitely you won't get disappointed. With in almost 3 Years to come, you'll be holding 4 shares for each you'll get allotted in IPO.How high it could go?
(in ,000) Vibor Bank Api Finance Sunrise Bank Kasthamandap
Paidup Capital 403,350 42,000 700,000 224,000
Reserve & Surplus (51,604) 756 355 6,787
Net worth Per Share 86.38 101.8 102.23 103.03
Price Listed on 428 550 499
PB Ratio 4.95 5.40 4.88
So looking to the average PB Ratio of these latest 3 IPO 5.07, we can expect this Bank's scrip to be listed between Rs.480 to Rs.520. But with the sharp decline of above companies' shares after listing, Rs.440 to Rs.460 would be fair price for this bank.
Source:Jamb News Service
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