“We have completed initial formalities and will be issuing 6 million units of shares each with a face value of Rs 100 to general public within the first week of May,” said CEO of Janata Bank Bijaya Pant.[break]
Pant, who was in Pokhara to publicize the bank’s IPO plan, said the bank’s performance in the first two years was encouraging and it’s good corporate governance practices and financial achievements assure that people investing on IPO will enjoy good returns.
“We have given special emphasis on corporation governance and thanks to that along with dedicated works of our staff, our transactions have grown two-fold in recent period,” said Pant interacting with the press on Saturday.
According to the financial statements issued at the program, Janata Bank mobilized Rs 6.75 billion in deposits as of April 4, 2012. It has earned operating profit of Rs 95 million so far this fiscal year.
Janata Bank is currently operating with 22 branches and will open the 23rd branch in Rolpa on Monday and 24th branch in Ason of Kathmandu within a month.
The bank has appointed Citizens Investment Trust, NMB Capital and Civil Capital Markets as issue manager. Officials said the three issue managers were appointed mainly because it was the biggest IPO from the banking sector in recent years and the confidence of the market of late have not been that high as in the past.
Moreover, these issue managers have committed to buy as much as half of the total shares, that is 3 million units, if the IPO drew poor response from public. Such commitments have come as per the new rule of the Securities Board of Nepal (Sebon).
“But given our strong financial indicators we are hopeful public will respond to our IPO call enthusiastically,” Pant stated.
Stock analyst and CEO of NMB Capital Markets Srijesh Ghimire too echoed similar confidence.
“The market had buoyed to 1,175 points because people were investing in stocks imprudently. It was unnatural growth, and hence, unsustainable. Now that it hovers around 300 points much needed corrections have already been attained,” Ghimire stated.
Referring that Nepse Index at one point had dropped below 300 points, he said the market at present showed improving trend. “We are confident Janata Bank’s public issue will be oversubscribed by two-fold,” he said.
Janata Bank is presently operating with paid up capital of Rs 1.40 billion. It has a total of 836 promoters.
Related story
Janata Bank, Triveni Dev Bank complete merger
