Sewa Bikash Bank is issuing 400000 units of share to public at face value of Rs. 100 per share from 7th January 2010 (2066 Poush 23). The public offering will end at 11 January at sooner if the demand of units offer exceeds the actual supply units. NMB Bank has been appointed as the issue and sales manager for the IPO. Following is the in-depth analysis of Sewa Bikash Bank.
Licensed As : "B" Class Development Bank from Nepal Rastra Bank
Registered Central Office : Butwal ( Ward No.8) , Rupandehi
Area Of Operation : All over Nepal as Per Requirement
Capital Structure:
Authorized Capital : Rs.20,00,00,000
Issued Capital :Rs.10,00,00,000
Paidup Capital :Rs.6,00,00,000 (Before IPO)
:Rs.10,00,00,000 (After IPO)
Ownership Structure (After IPO) :
Promoters : 60%
General Public : 40%
Financial Analysis
Major Shareholders:
S.No. | Name | Address | No. Of Shareholdings |
1. | Ram Prasad Pokharel | Tansen ,Palpa | 32,800 |
2. | Dewan Singh Thapa | Butwal,Rupandehi | 30,000 |
3. | SitaRam Uprety | Rupandehi | 31,150 |
Board Members:
S.No | Name | Designation | Address | No. Of Shareholdings |
1. | Bhim Prasad Tulachan | Chairman | Butwal,Rupandehi | 22,800 |
2. | Bhoj Prasad Shrestha | Director | Butwal,Rupandehi | 22,800 |
3. | Bhuwa Prasad luitel | Director | Butwal,Rupandehi | 20,000 |
4. | Jeevan Aryal | Director | Butwal,Rupandehi | 15,000 |
5. | Devi Prasad Aryal | Director | Butwal,Rupandehi | 20,000 |
Company's Previous Years Actual and Three Years Projected Financial Position
Particulars | Actual (In'000) | 2066/67 | Projected (In '000) | ||||
2063/64 | 2064/65 | 2065/66 | (Ashwin End) | 2066/67 | 2067/68 | 2068/69 | |
Paidup Capital | 12,000 | 30,000 | 60,000 | 60,000 | 100,000 | 200,000 | 240,000 |
Reserve and Surplus | (1,445) | 721 | 10,668 | 13,881 | 22,910 | 54,200 | 67,200 |
Net Worth | 10,555 | 30,721 | 70,668 | 73,881 | 122,910 | 254,200 | 307,200 |
Deposit | 66,419 | 374,118 | 801,452 | 851,146 | - | - | - |
Loans and Advances | 52,047 | 251,026 | 566,582 | 672,165 | - | - | - |
Net Profit | (1,445.) | 2,167 | 9,903 | 1,785 | 12,246 | 31,294 | 53,002 |
No. of Shares | 120 | 300 | 600 | 600 | 1,000 | 2,000 | 2,400 |
Net worth Per Share | 87.96 | 102.40 | 117.78 | 123.14 | 122.91 | 127.10 | 128.00 |
EPS | (12.04) | 7.22 | 16.51 | 2.98 | 12.25 | 15.65 | 22.08 |
Return On Net Worth (%) | (13.69) | 7.05 | 14.01 | 2.42 | 9.96 | 12.31 | 17.25 |
In the past three years, Company had increased its paid-up capital from Rs.12 millions to Rs. 60 milllion ,with augment of 150% in 2nd year and 100% in 3rd year. In the mean time it has been able to increased its deposit collection and loans & advances with 463% ,114% and 382% ,125% respectively in 2nd and 3rd year. Up to the end of 1st Quarter of current fiscal year the company has been able to achieve the growth of 6.2% and 18.6% in deposit collection and loans & advances respectively in compare to last F/Y. C/D ratio of the company is 0.79 which is just at the benchmark as per NRB direction.
Despite the loss in early year, company has been able to achieve the healthy growth in profit. As per first quarterly financial result, company has total net worth of Rs.73.88 Millions with net worth per share of Rs.123.14.
What Can Investors expect from this bank ?
Buying share valued Rs.123.14 at Rs.100 is always a not to miss chance. Once you got allotted, on listing your Rs.100 investment will surely be listed between Rs.560 to Rs.680. But If you are in mind to hold this scrip as long term investment then you'll probably be awarded with 1:1 right share in next year (F/Y 2067/68) and out of the expected profit of F/Y 2068/69 at least 20% bonus share seems to be significant. So, if you are planning to hold for at least three years then for your each scrip you'll be holding 2.2 scrip by the end of the period.
Source: Jamb News Service
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