IPO Allotment of Kasthamandap

 Kasthamandap Development Bank Limited has allotted its initial public offering today (19 January 2010). The 'B' grade development bank had issued 960,000 units of share to public at face value of Rs. 100 from 17 to 20 November, 2009 (2066 Mangsir 2 to 5). At the 60 days of IPO closing, Kasthamandap has allotted its share to 29206 applicants excluding its employees.
According to SEBON provision on IPO allotment, there is minimum of 40 days and maximum of 70 days to allot the public issue after the closing date. Companies have to allot within 40 days after IPO closing if the number of application is less than 100000. Likewise, if application is between 100000-200000 allotment within 50 days, 200000-300000 within 60 days and if the number of application exceeds 300000, maximum days of allotment will be 70 days.

As per the SEBON rule, Kasthamandap allotted its IPO within 60 days as it had total number of applicants of 2,30,188 including 101 staffs and 364 invalid applicants. Likewise, the demand of shares at IPO was 4,77,27,597 units by all the applicants. However, only 29307 applicants (including 101 staffs) entitled to be the shareholder of the development bank holding total units of 960000 (including 38400 for staffs).

Intra-bank rate again up to 7 pc

KATHMANDU, Nov 26: Nepal´s money market liquidity that chiefly represents cash held by banks for immediate investment remained tight on Thursday, thus pushing the intra-bank rate up to seven percent -- 1.5 percentage point more than the rate seen on Wednesday. 

A banker told myrepublica that the liquidity shortage that emerged lately, however, is a short-term phenomenon but is likely to remain throughout the coming week.

The market, which was already running tight since the past six weeks, experienced a new wave of liquidity shortage after huge amount of cash collected while issuing primary shares was deposited to the central bank, the banker added.

Last week, Kasthamandap Development Bank issued 9.6 million units of ordinary shares that attracted subscriptions worth around Rs 5 billion -- 50 times more than offered.

As per the mandatory provision, all the cash collected while issuing primary shares will have to be deposited at the central bank for at least five days within six days of the closure of public offer.

The intra-bank rate, a barometer to gauge status of cash liquidity in the market, eased down Tuesday after the central bank injected additional Rs 3 billion, taking the total injection made by the central bank in the last 15 days to Rs 8 billion. Before the injection, the inter-bank rate was in the range of 8.75 percent to 9 percent.

REPUBLICA 

Market hits lowest point since May 2007

The NEPSE index(-5.09%) witnessed a sharp decline throughout the week with the benchmark index closing at 534.32 points, the lowest index level since May 27, 2007. The index was pulled down primarily by readjustments in the share prices of various companies post book closures for rights and bonus shares and cash dividends. In addition, the IPOs of Kasthamandap Development Bank and Pathibara Development Bank lured investors away from the secondary market. 

The Commercial Banking sub-index (-7.16%) was unable to sustain its ascent from the previous week, mainly due to readjustment in the share prices of Himalayan Bank (-Rs 457) and the book closure of DCBL Bank (+Rs 1) for its 5% bonus shares. The Finance sector (-5.80%) also took a big dip as Reliable Finance (-Rs 55) closed its books for 20% bonus shares and 10% cash dividends, and International Leasing and Finance (-Rs 291) did the same for 1:2.1 rights shares. Despite significant gains posted by Narayani Development Bank (-Rs 24) and Excel Development Bank (+Rs 2), the Development Bank sector (-5.43%) failed to impress as the stocks of a majority of the companies slid. Depreciation in the stock value of Chilime Hydropower (-Rs 25) hit the Hydropower sector. Similarly, the Insurance sector (-2.38%) also declined because of the price of Nepal Life Insurance (-Rs 84). Similarly, a fall in the share price of Nepal Telecom Company (-Rs 3) ruled out an uptrend in the Others sub-index (-0.58%).

To boost investor confidence, NRB announced it is injecting an additional Rs 3 billion into the market to ease the liquidity crunch. The central bank has also extended the timeframe to mid-April 2011 for commercial banks to raise their paid- up capital to Rs 2 billion. Prabhu Finance (-Rs 10) and Premier Finance (+Rs 6) are distributing 10.53% cash dividends and 1:1 rights shares respectively. NMB Bank (-Rs 17) which listed 53,586 rights shares confirmed that 19% of its promoter shares will be converted into ordinary shares. Nepal Investment Bank (-Rs 60) became the first bank in Nepal to receive an ´A´ rating from the Indian Credit Rating Agency (ICRA). Arun Valley Hydropower, Excel Development Bank and Crystal Finance Limited were listed on the stock exchange this week. Guheshwori Merchant and Finance (-Rs 16) announced 2% cash dividends along with 10% bonus shares. With IPOs and book closures of several companies lined up along with the divestment of promoter shares into ordinary by several major companies, no sign of an imminent reversal is apparent.

REPUBLICA 

Eagle Eyes on Kasthamandap IPO

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

Kasthamandap Dev Bank turns 3

Kasthamandap Development Bank completed two years of operation on Sunday. Issuing a statement, the bank said it had managed to open eleven branches in different parts of the countries apart from its headquarters in New Road, Kathmandu. The bank said it had managed to steadily increase deposits and loans and had also operated in profit right from its beginning.
The bank also operates evening counter services and provides ATM and other ´modern´ banking services targeted at all classes of clients, it said.
Source: myrepublica.com