Market Watch, Stock News

Sewa Bikash Bank IPO from 07 Jan 2010

Published by Octron on December 29, 2009

The stock paradigm seems to be shifting from secondary to primary market. Every now and then, showers of IPOs are coming down like cats and dogs. Secondary market seems to facing dry spell, but IPOs are being oversubscribed like newly opened KFC in Durbar Marg (~ 80 times). Sewa Bikash Bank is releasing 4,00,000 units of shares with face value of Rs. 100/unit. The minimum quantity that you can apply is 10 units, while maximum is 20,000 units. NMB is the issue manager for the IPO release.

Sewa Bikas Bank is registered class ‘B’ regional financial institution (under NRB) with registered headquater in Lumbini zone, Rupendehi district, Butwal. The board is led by Mr. Bhim Prasad Tulachan (Chairman), while management team is led by Mr. Mahesh Pd. Kaphle (Chief executive Officer). Mr. Tulachan is a graduate with Economics as major and has experience in management of medical related institutions. Interestingly major promoters of the bank, who holds maximum number of shares, have only basic education. The bank currently has 5 branches in Bhairahawa, Kotihawa, Saljhandi, Khaireni, Gorusinge and is planning to open 2 more in Kawasoti and Bardaghat.

Capital Structure

Authorized Capital: NPR 200.00 Million
Issued Capital: NPR 100.00 Million
Paid-up Capital: NPR 60.00 Million

Though, the bank was in loss in initial year FY 063/64, the bank was able to make net profit of 2.1 Million Rupees in FY 064/65 and 9.9 Million in FY 065/66. The bank projects to make 12.24 Million profit in FY 066/67 and much higher in forthcoming years. You can see the profit and loss statement online here [profit and loss statement].

Major Links

Verdict: As mentioned previously, the trend for IPOs has always been overwhelming. Same can be expected for Sewa Bikas Bank. Looking its Networth (Current & Forecasted) as published in announcement notice this is one development bank which you can easily bank upon.

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