Wednesday, January 27, 2010

City IPO in the town from 2nd Feb

City Dev. Bank Limited

Name                                            City Development Bank Limited
Licensed As                                  "B" Class Development Bank
Registered Central Office:            Chipledhunga, Pokhara, kaski
 Area Of Operation                       Kaski, Tanahau and L
amjung as Per Requirement
Capital Structure:
                Authorized Capital           : Rs.40,00,00,000
                Issued Capital                    : Rs.20,00,00,000
                Paid-up Capital                  :Rs.14,00,00,000 (Before IPO)
                                                               :Rs.20,00,00,000 (After IPO)
Ownership Structure (After IPO) :                           
                Promoters                          : 70%
                General Public                   : 30%

Management                                                                    :
S.No.
Name
Designation
Education
Experience
1.
Bishwa Mohan Adhikari
CEO
MBA/B.Ed.
More than 13 years of experience in Financial sector
2.
Padma Bahadur G.C
Loan Manager
MBA
More than 10 years of experience in Financial sector
3.
Madhav Prasad Adhikari
Operating Manager
Bachelor Degree
More than 8 years of experience in Financial sector


Board Members                               :
S.No
Name
Designation
Address
No. Of Shareholdings
1.
Rajendra Kumar Bataju
Chairman
Pokhara-8
20000
2.
Pritam Man Buddhacharya
Director
Pokhara-2
60000
3.
Krishna bahadur Thapa
Director
Bijayapur,Lekhnath-5
40000
4.
Jayendra Gauchan
Director
Pokhara-8
64000
5.
Kishor Kumar Gurung
Director
Pokhara-8
40000

Company's Previous Years Actual and Three Years Projected Financial Position
Particulars
Actual (In '000)
Projected (In '000)
 2064/65
 2065/66
2066/67
(Ashwin End)
2066/67
 2067/68
2068/69
Paidup Capital
     70,000.00
       140,000.00
                     140,000.00
   200,000.00
   200,000.00
   200,000.00
Reserve and 
Surplus
       1,421.00
         12,142.00
                       16,306.00
     35,729.00
     65,699.00
   103,874.00
Net Worth
     71,421.00
       152,142.00
                     156,306.00
   245,820.00
   254,200.00
   256,000.00
Deposit
   393,549.00
   1,025,287.00
                 1,199,149.00
1353379
1664656
2030880
Loans and
Advances
   303,299.00
       805,092.00
                     965,054.00
1117891
1331725
1616581
Net Profit
       1,422.00
         10,816.00
                         4,163.00
23,587
     29,970.00
     38,175.00
No. of Shares
                 700
                 1,400
                               1,400
             2,000
             2,000
             2,000
Net worth
Per Share
           102.03
               108.67
                             111.65
           122.91
           127.10
           128.00
EPS
                2.03
                    7.73
                                  2.97
             11.79
             14.99
             19.09
Return On
Net Worth (%)
                1.99
                    7.11
                                  2.66
                9.60
             11.79
             14.91
CD Ratio
             77.07
                 78.52
                               80.48
             82.60
             80.00
             79.60

Analysis
In the past three years, Company has increased its paid-up capital From Rs.70 Millions to Rs.140 Millions, with 100% in 2nd year. In F/Y 2065/66 bank has been able to increase its loans & advances and deposit collection by 165% and 160% respectively while Up to first quarter of F/Y 2066/67 increased by 19.87% and 16.96% respectively. C/D ratio of the Company is 80.48% which is just at the benchmark as per NRB direction.
Company has been able to achieve the healthy growth in profit. As per First Quarterly Financial result, company has total net worth of Rs.156.30 Millions with net worth per share of Rs.111.65.
What Can Investors expect from this bank?
With net worth per share of Rs.111.65, as per Nepse rules* its listing price would be in between Rs.502 to Rs.614 depending on the market forces at the time of listing. Analyzing the financial information provided by the Bank, it appears that Bank will neither reward any right shares nor bonus in next three years. So for now let's not expect any bonus or right from this Bank but as an investor you'll surely be rewarded with at least 10% cash dividend out of the profit of this fiscal year.
*Listing prices would be 5 times of net worth ± 10%.
(All analysis is purely based on Information published by City Development Bank Ltd.)

Source: Jambnews

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