Nepal | September 30, 2020

Number of ‘Class A’ firms in Nepse rises to 131

Himalayan News Service
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Group 'A' in Nepse index

Source: Nepse

Kathmandu, February 12

Altogether 131 companies have been listed in the prestigious Group ‘A’ category in the country’s only secondary market for the fiscal year 2016-17. For fiscal 2015-16, the number of ‘A’ listed companies stood at 114.

As per the new classification, 26 commercial banks, 56 development banks, 17 insurance companies and 25 finance companies have been placed under the ‘A’ listed companies, as per the statement issued by Nepal Stock Exchange Ltd (Nepse) today.

Moreover, one firm in others, three under hydropower, one in hotels, and one in manufacturing and production subgroups have also been categorised as Group ‘A’ companies.

Century Commercial Bank is the new firm to receive the Class ‘A’ grade this year.

In the insurance subgroup, Alliance and Surya Life Insurance have been knocked off the ‘A’ list, while Gurans Life Insurance, Prabhu Insurance, Rastriya Beema Company and United Insurance are the new entrants.

Among the finance companies, Hama, Jebils, and Pokhara have been upgraded to the ‘A’ Class, whereas Fewa has been removed.

The development banks subgroups saw the most number of removal as well as new entries. The status of development banks like Alpine, City, Country, Deprosc, Ekata, Hamro, Jyoti, Kalinchowk, Kankai, Laxmi Laghubitta Bittiya Sanstha, Manaslu, Malika, Mount Makalu, Rapti Bheri, Swarojgar, Triveni and Fewa was upgraded. Meanwhile, Bhrikuti, Bright, Bishwa, Clean Energy, Civic, Kalika and Pathibhara did not make it to the list.

Meanwhile, the Group ‘A’ companies in others (Nepal Telecom), manufacturing and production (Unilever Nepal), hydropower (Chilime, Butwal Power, Arun Valley) and hotels (Soaltee) subgroups remained the same.

There were altogether 235 companies listed in Nepse by the end of fiscal 2015-16 and the firms have been categorised as ‘A’ companies for fiscal 2016-17, as per the Securities Listing Bylaw.

According to Bylaw 14, Sub-Bylaw 2 of Securities Listing Bylaws, 1996, corporate bodies fulfilling the following conditions shall be placed in Group ‘A’: those with paid-up capital (ordinary shares) amounting to Rs 20 million; having at least 1,000 ordinary shareholders; the company that has been making profit continuously for at least past three years.

Moreover, to make it to the list, the book value of the share should not be less than the paid-up value; particulars of business and statements of income and expenditure of the concerned financial year should have been submitted to Nepse within six months from the date of expiry of the financial year.

When Nepse began classifying the listed companies in 1997-98, only seven companies made it to ‘A’ category. The number rose to 15 in 1998-99, 18 in 1999-2000, 23 in 2000-01, 26 in 2001-02, 31 in 2002-03, 36 in 2003-04, 43 in 2004-05, 48 in 2005-06, 56 in 2006-07, 66 in 2007-08, 71 in 2008-09, 78 in 2009-10, 94 in 2010-11, 117 in 2011-12 and 133 in 2012-13.

The number of companies listed under ‘A’ category fell to 120 in 2013-14, before rising to 130 in 2014-15. In fiscal 2015-16, the number had dropped to 114.

A version of this article appears in print on February 13, 2016 of The Himalayan Times.

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