Nepse reports fall in number of group 'A' companies
KATHMANDU, Feb 12: The number of Group ´A´ companies listed on the domestic stock market fell for the first time in the last 17 years as mergers among financial institutions started picking up and many firms failed to submit updated financial reports on time.
In the current fiscal year, only 120 companies were classified under Group ´A´ of Nepal Stock Exchange (Nepse), the latest report of the bourse operator shows. This compares with a total of 133 Group ´A´ companies listed on Nepse as of last fiscal year.
The fall came due to consolidation of many finance companies and development banks, and failure of many listed companies to provide financial reports within six months of conclusion of last fiscal year.
Nepse enrolls companies in Group ´A´ if they have paid-up capital of at least Rs 20 million, possess at least 1,000 general shareholders, generate profits for three consecutive years, maintain book value of shares at higher level than paid-up value and submit financial reports within six months of conclusion of every financial year.
In the current fiscal year, a total of 28 companies were removed from the group after they failed to meet conditions set by Nepse or merged with other institutions. At the same time, 15 new companies were able to enroll themselves in the list.
Nepse´s report shows finance companies group saw the biggest drop in Group ´A´ companies, with the number falling to 31 this fiscal year from last fiscal year´s 48. In total, 21 companies were removed from the list and four new companies - Everest Finance, Om Finance, Seti Bittiya Sanstha and Synergy Finance - were added to it.
“The number of ´A´ group finance companies fell this fiscal year because of mergers or their failure to submit financial reports on time,” a Nepse official said.
The insurance group also saw removal of Himalayan General Insurance Company from the list.
The development bank group, on the other hand, saw addition of three companies to the list, which pushed the number of Group ´A´ development banks to 45 this fiscal year from last fiscal year´s 42.
Commercial banks also saw inclusion of two new companies - Janata Bank and Sanima Bank - to the list, raising the number of Group ´A´ banks to 25 this fiscal year from 23 recorded in the last fiscal year.
A total of 229 companies are currently listed on Nepse.