Ace Development Bank's Corporate Social Responsibility (CSR) initiative

Ace Development Bank has supported a project organised by Winrock International by providing 10 water pumps. Under Ace's Corporate Social Responsibility (CSR) initiative, it targets uplifting the livelihood of 300 farmers of Sonmati Majaura, Ayodhya Nagar and Chandra Lal Pur of Siraha. The project aims to provide alternate resource to petrol and diesel and teach modern farming methods to generate higher income for local farmers, said the bank. The process of alternative resource to petrol and diesel include collecting Jatropa seeds from waste land of Sonmati Majaura, Ayodhya Nagar and Chandra Lal Pur of Siraha, then recycling to produce fuel which will be an alternative to petrol and diesel.

Source:
tht

ADBL's IPO oversubscribed by 150%

The initial public offering (IPO) of Agricultural Development Bank Ltd (ADBL) has been oversubscribed by one and a half times till Tuesday, the third day of the issue. Siddhant Raj Pandey, Chief Executive Officer of Ace Development Bank - the issue manager for the largest ever IPO in the country, told media persons that about 55,000 people have subscribed for shares worth Rs 1.4 billion till Tuesday evening. "The warm response from the public despite liquidity crunch and sluggish stock market has encouraged us. We have found equal response to the issue both in the capital and other parts of the country," Pandey said. He said application for shares worth Rs 390 million was collected by ADBL´s branches in the capital alone. "Most of the payments for applications were made through banking system in the capital, while home deposits were used in rural areas," he added. He said applications for subscription will be closed from Wednesday evening. ADBL has issued IPO of 9.6 million units of shares worth Rs 960 million from Sunday. Bank officials and the issue manager have claimed that the banks share will be oversubscribed by five times due to sound financial performance of the bank. A total of 288 outlets have been set up to collect applications across the country. With the new issues, total stake for public in the largest commercial bank in terms of branch network will increase to 44.14 percent. The bank issued 14.14 percent shares -- 4.52 million units-- to its debtors on December 10, 2007 in a bid to gradually divest the bank´s share to public.

Source: myrepublica.com

Door opens for Agricultural Dev. Bank IPO

The Agricultural Development Bank Limited (ADBL) has named its issue manager Ace Development Bank as underwriter of its ordinary share issue. It has opened door for ADBL to get approval from Securities Board of Nepal for issuing shares.

The ADBL is working to issue ordinary shares worth Rs. 960 million which is the largest ever initial public offering (IPO) in the country. "The ADBL board on Nov. 10 decided to award the job of underwriting the ADBL's shares to Ace as its quoted fee was lower than its rival NMB Bank," said a senior ADBL official. Ace had quoted Rs. 775,000 against Rs. 960,000 by NMB, added the official.

The underwriter promises to purchase the shares if the public doesn't buy them in the amount desired by the issuing company. Although the bank had called for quotations from seven merchant bankers including Elite Merchant Banking, Citizen Investment Trust, Vibor Development Bank, NIDC Capital Markets and Development Credit Bank besides Ace and NMB, these two were the only takers for the underwriting contract. SEBON, the regulatory body of the stock market, had delayed giving permission to the ADBL to go for an IPO for its failure to have its shares underwritten as per the SEBON directive. The SEBON had also sought more disclosure about its financial status.

As per the directive, any company going for an IPO should ensure underwriting of half of the total shares to be issued. Only companies that have received a license from the board can underwrite the shares. The ADBL had difficulty finding merchant bankers to underwrite its shares worth a whopping Rs. 480 million with the central bank preventing B and C class financial institutions from underwriting more than 20 and 10 percent respectively of the primary shares. Nepal Rastra Bank (NRB) resolved the problem by issuing a fresh directive on Oct. 30 freeing all classes of financial institutions from this restriction. "We could not have been able to underwrite the shares as per the SEBON directive if NRB had not issued a new directive removing the barrier on underwriting," said Siddhant Raj Pandey, chief executive officer of Ace. "The provision of underwriting 50 percent of the total shares is worthless as it only increases the expenses of the issuing bank."


ADBL officials also said that they would have been compelled to pay a higher fee for underwriting as only a few merchant bankers could compete in the bidding process as per the earlier NRB directive. ADBL officials said that the bank's board would decide to approach SEBON within a day or two after meeting the required criteria. SEBON spokesman Niraj Giri said that the ABDL was most likely to get its approval the next time as it had ensured underwriting as per SEBON directives. "The disclosure related prerequisites are not so big problems," he added. The ADBL is issuing 30 percent of the shares to the public. With this IPO, the stake of the government in the ADBL will remain at 55.86 percent. The bank issued 14.14 percent of its shares to the public two years ago, especially to those who had been clients of the ADBL once.

Source: 
ekantipur.com

Three banks take the lion's share

Three merchant banks, NIDC Capital Markets Limited (NCML), NMB Bank limited and Ace Development Bank are neck and neck in business competition whereas the others are struggling hard. Out of 63 companies whose shares and debentures were issued last fiscal year, 18 chose NCML as their merchant bank, 17 went for NMB Bank and 13 settled with Ace Development Bank. This means the three occupied 76.19 percent business as a whole.

Citizen Investment Trust (CIT) received five clients, Nepal Finance (NEFINSCO) and Elite Capital four each, and Development Credit Bank and CIT/NCML one each. These three companies have ruled the roost during the past four months of the current fiscal year, too, with NMB getting business from six companies, NCML from five and the Ace from four. The Civil Capital got business from two companies and CIT from one.

Chief Executive Officer of NMB Upendra Poudel said that his bank pioneered shares applications through the internet and took other inventive measures that helped enhance its credibility and clients' trust. "We have been longer in the business, which has also helped us to win more clients," he added. Although there are 18 merchant bankers registered with the SEBON, only eight companies last year and four this year got business to manage the issuance of shares and debentures. Then, why are an increasing number of merchant banks coming up in the market? Niraj Giri, spokesman of Securities Board of Nepal (SEBON), said companies get attracted to this business as it opens many avenues, including issuance of shares, underwriting (guaranteeing to purchase share in case of non-subscription of shares), and portfolio management (making investment decisions using money other people have placed under his or her control) and registration of shares.

Besides 18 more companies already registered with the SEBON are awaiting final approval from the SEBON for merchant banking. They include Nabil Bank, Capital Investment and Development Company, National Investment and Capital Markets and Akash Investment. Financial institutions are attracted to this market as they want to reach wider market through mass marketing. "Many business opportunities have also been created in the capital market for the merchant bankers," Poudel added. Most of the jobs for the merchant banks have been related to rights share issuance, according to SEBON. Out of 18 companies receiving approval for issuing shares this year, 11 are for rights issues and the rest for ordinary shares. As many as 63 companies got approval to issue shares last year. Of these, 50 got approval to issue rights shares, 11 for ordinary shares and two for debentures.

Nepse rebounds: Investors cheers loud

Finally, the hope rebounds in home equity market even with the diminutive surge. After eighth consecutive plunge, Nepse bounce back with spurring gains amid the caution over political dispute and weak investor's sentiment. The benchmark index added marginal of 0.21 points or 0.04 percent to close at 567.27 on Monday, discounting bearish crawl in previous sessions.

"I am glad Nepse rose today, even though it rose with fewer points it has break the declining trend" said Shankar Agrawal, an investor in secondary market.

Banking scrip plays an eminent role for the secondary market's up leg with a motivating gain of 3.04 points or 0.57 percent to 538.56 after nonstop slide. However, the gains were restricted by hefty decline in hydro by 22.79 points or 2.75 percent to 806.30, followed by 6.50 points plummets in development bank to 632.80. Finance slid 2.55 points to 604.33; others edge down 1.17 points to 623.88 while insurance remained unchanged.

The slight uptick in demand of key commercial bank led domestic blue chip or sensitive index to drop maximum points amid the hefty decline in development bank and hydro sector. 14 commercial banks, 37 finance companies, 15 development bank, 10 insurance companies and one each from hydropower and manufacturing companies are included in sensitive index. Sensitive index closed at 140.88 down 0.16 points or 0.11 percent. However, float Index an indicator of performance of ordinary shares in the market rose 0.06 points to 54.18.

Merely 55 companies registered their presence in the secondary market with 22 gainers and 25 losers. The A-D ratio was maintained at .88. All in all 77843 shares traded today via 734 transactions. Moreover, Rs. 52874530 turnover was realized along with Rs.399841.82 million market capitalizations. Yesterday, 219125 units' shares traded today via 877 transactions to Rs. 84204608 turnover along with Rs.399699.38 million market capitalizations.

The top five standouts of the day are LUBL(8%), BOK( 4.84%), NBB( 4.78%), KIST( 4.53%), STFL(4.33%). Whereas, ACEDBL(-7.53%), PRFL( -7.27%), CHCL( -5.95%), PSDBL( -5.8%), ILFC( -4.84%). comprised of the top five losers.

Ace Development Bank, WEAN ink accord

KATHMANDU: Ace Development Bank (Ace) and Women Entrepreneurs’ Association of Nepal (WEAN) signed an MoU to work jointly to empower disadvantaged — especially women — through generation of self-employment opportunities. Ace CEO Siddhant Raj Pandey and WEAN president Rita Bhandary signed the MoU on behalf of their respective organisations. Ace will provide training and access to finance for implementation of plans through WEAN. Ace has also provided Rs 1,00,000 to WEAN Training Fund. — HNS

NEPSE drops 10pt

Kantipur Report
KATHMANDU, Sept 1 - The Nepal Stock Exchange (NEPSE) Monday lost 10.21 points on the trading floor. The sensitive index also decreased by 3.28 points.
All the sub-indices on NEPSE dropped on Monday. The hydropower sector lost the most by shedding 18.21 points followed by the banking and finance sectors which fell 13.26 points and 4.68 points respectively. Development bank fell 4.42 points and insurance lost 0.19 point.
The share market witnessed a total turnover of Rs. 89.789 million with 108,175 shares being traded. Shares of 64 companies changed hands on NEPSE.
Among the 20 commercial banks listed on NEPSE, Kumari Bank posted the biggest growth with its stock rising by 13 points while Standard Chartered Bank lost the most on the trading floor by shedding 160 points.
Similarly, among the 11 development banks whose shares were traded on NEPSE on Monday, Triveni Bikas Bank witnessed the highest increase of 26 points while Pashupati Development Bank dropped 37 points.
Among the 19 finance companies on NEPSE, Pokhara Finance was the highest gainer with an increase of 9 points in its share price. NIDC Capital Markets lost 36 points.
The top five winners on NEPSE were Triveni Bikas Bank with a 3.65 percent rise in its stock price followed by Kumari Bank, Prudential Bittiya Sansthan and Sanima Bikas Bank.
Similarly, the top five losers on Monday were Pashupati Development Bank which fell by 7.63 percent followed by Nabil Bank promoter share, DCBL Bank, Nepal Industrial and Co. Bank and Ace Development Bank.
The Bank of Kathmandu topped the chart in terms of turnover with Rs. 13.47 million.

NEPSE starts week on weak note

Kantipur Report
KATHMANDU, Aug 31 - The Nepal Stock Exchange (NEPSE) started the week on a weak note with the NEPSE index losing 10.39 points on Sunday. The index settled at 671.15 points when trading closed. The sensitive index also lost 3.24 points.
A double-digit decline of banking sub-index pushed NEPSE down on Sunday. Sunday's trading session saw the banking sub-index, a major component of the secondary market, declining by 16.09 points followed by development bank with a 8.53 point loss. Finance and insurance were the only two sub-indices that had marginal gains on NEPSE.
Total transactions on NEPSE reached Rs. 64.15 million with 100,516 units of shares being traded. Shares of 62 companies changed hands on Sunday.
Among the 22 commercial banks whose shares were traded on NEPSE on Sunday, Everest Bank's convertible preference posted the biggest growth with the stock rising 34 points while Nabil Bank lost the most on the trading floor by shedding 117 points.
Similarly, among the 13 development banks, Malika Bikas Bank and Gandaki Bikas Bank witnessed the highest increase of 5 points each while Ace Development Bank and Bageshwori Bikas Bank lost 15 points.
Among the 21 finance companies, IME Financial Institution was the highest gainer with an increase of 85 points in its share price. World Merchant Bank was the biggest loser shedding 52 points. The top five winners on NEPSE were IME Financial Institution with a 7.87 percent rise in its stock price followed by Lumbini General Insurance, Pokhara Finance, Everest Bank convertible preference and Reliable Finance.

NEPSE down 0.77 point

The Nepal Stock Exchange (NEPSE) went back down Thursday dropping 0.77 points to close at 681.54. Thursday's trading session saw the banking sector, a major component of the secondary market, declining by 2.51 points while the finance sector lost 1.32 points. Among the leading sub-indices on NEPSE, the hydropower sector gained 7.12 points while the development bank sector, hotel sector and insurance sector increased by 4.54 points, 2.9 points and 0.2 point respectively. Total transactions on NEPSE reached Rs. 93.996 million with 130,129 units of shares being traded. Shares of 68 companies changed hands on NEPSE.Among the 22 commercial banks whose shares were traded on NEPSE on Thursday, the Bank of Kathmandu posted the biggest growth with its stock rising 76 points while Nabil Bank lost the most on the trading floor by shedding 100 points. Similarly, among the 15 development banks, Gurkha Development Bank witnessed the highest increase of 27 points while Ace Development Bank Limited lost 4 points.Among the 22 finance companies, World Merchant Bank Ltd was the highest gainer with an increase of 47 points.
Source: Kantipur

NEPSE makes another downfall

KATHMANDU, Aug 26 - The Nepal Stock Exchange (NEPSE) Tuesday lost 14.47 points on the trading floor. The sensitive index also decreased by 4.8 points.
A majority of the sub-indices on NEPSE saw a decline on Tuesday. The banking sector lost the most by shedding 23.42 points followed by the insurance, finance and development bank sectors which went down by 1.66 points, 1.07 points and 0.58 point respectively.
The share market witnessed a total turnover of Rs. 86.36 million with 123,722 shares being traded. Shares of 55 companies changed hands on NEPSE.
Among the 21 commercial banks listed on NEPSE, Laxmi Bank posted the biggest growth with its stock rising by 6 points while Nabil Bank lost the most on the trading floor by shedding 290 points.
Similarly, among the 10 development banks whose shares were traded on NEPSE, Ace Development Bank witnessed the highest increase of 11 points while Triveni Bikas Bank dropped 14 points.
Among the 15 finance companies on NEPSE, ICFC Bittiya Sansthan was the highest gainer with an increase of 9 points in its share price. NIDC Capital Markets lost 22 points.
The top five winners on NEPSE were Ace Development Bank with a 2.33 percent rise in its stock price followed by ICFC Bittiya Sansthan, DCBL Bank, Butwal Power Company and Chilime Hydropower Company. Similarly, the top five losers on Tuesday were Nepal Investment Bank which fell by 9.92 percent followed by Kumari Bank, Nabil Bank, Global Bank and Nepal Bangladesh Bank.
Butwal Power Company topped the chart in terms of turnover with Rs. 10.18 million. - Kantipur Report