Kathmandu. Finance Minister Dr. Swarnim Wagle for the fiscal year 2083. Reading the budget statement of ’84 in a spectacular manner amidst thunderous applause in the Parliament, he announced to sell more shares of Nepal Telecom (NTC) and Bishal Bazaar Company (BBC) to the public. In fact, both of these companies are examples of government malpractice. <\/p>\n
The Bishal Bazaar Company has not been able to hold its annual general meeting since 2076 BS and the fiscal year 2079. The general public has not been able to see the financial statements of the 80s. The company has a paid-up capital of Rs 4.01 billion and the general public has only 150,000 units of shares. <\/p>\n
The company, which earns Rs 150 million annually from the rent collected from the shop, has a reserve fund of Rs 1.16 billion. The company had distributed 14 percent cash dividend to its shareholders in its last AGM. However, its earnings per share is only around Rs 3. <\/p>\n
The building built in 2026 BS on 12 ropanis of land has been demolished. Assuming the lifespan of any building is 50 years, then considering the seismic risk and other factors, the current building in the big market is becoming unsafe. Although the area where the Public Service Police Office is located is also owned by Vishal Bazaar, the company has not received anything from it. <\/p>\n
The present building of Bishal Bazaar used to house Nepal’s first Janasewa Cinema Hall. After the hall was destroyed by riots and arson, the government and businessmen came together to set up a huge market company. <\/p>\n
At the time of the establishment of the company, shares were distributed to the traders, so they started the business by renting the shop at a cheap price. Many of the traders who bought shares have died since then, while many of the shares and shops have been sold and new traders have been renting cheaply. <\/p>\n
Even if the government sells 20 percent more shares to the general public, 8 million units of shares will be added in the secondary market. The company, which is currently trading at a price of Rs 4,600 per share, has seen a direct impact on the share price of the company. <\/p>\n
The condition of Nepal Telecom is also deteriorating. Out of the paid-up capital of Rs 18 billion, the general public has 8.42 percent or 15.2 million units. The company’s share price has been falling in recent days, which is currently around Rs 850. <\/p>\n
Although the modality of selling the company’s ordinary shares to the general public with a net worth of Rs 550 per share has not been decided, there is a risk that the market will be affected due to the addition of about 30 million units to the general public. This is the reason why the share price of Nepal Telecom has seen a decline in the last few days. <\/p>\n
On the one hand, the telecom business continues to decline, the government has to pay a huge amount of money for the license, the low interest rate is earned by keeping the Rs 80 billion in the reserve in the bank, the possibility of dividend from the companies like Upper Tamakoshi and Namaste Pay is not going to improve the condition of the company. <\/p>\n
Although Nepal Telecom has equipment, buildings and land worth billions of rupees, the management has not been able to work well due to excessive government interference and the cycle of complaints in the CIAA. The government does not allow new work to be done, the complaints and cases that fall under the authority while purchasing any technology and equipment have made Telecom unable to embrace the rapid changes in technology and has not been able to compete with private service providers. Repeated plans to forge strategic partnership have also failed due to the government. <\/p>\n
Instead of reforming these two institutions, the government is trying to raise money by selling shares to the public. Because the government, which has made a big budget, now needs resources i.e. money. <\/p>\n
In the past, when the government needed money, there was talk that the then Girija Prasad Koirala government had sold the shares of Nepal Telecom at an inflated price of Rs 600 and distributed the money to the Maoist guerrillas<\/p>\n","protected":false},"excerpt":{"rendered":"
Kathmandu. Finance Minister Dr. Swarnim Wagle for the fiscal year 2083. Reading the budget statement of ’84 in a spectacular manner amidst thunderous applause in the Parliament, he announced to sell more shares of Nepal Telecom (NTC) and Bishal Bazaar Company (BBC) to the public. In fact, both of these companies are examples of government […]<\/p>\n","protected":false},"author":16,"featured_media":301727,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[45031,45060,45159,45180],"tags":[],"class_list":["post-301729","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banner-news-en","category-corporate-en","category-news-en","category-stockmarket-en"],"acf":[],"_links":{"self":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/301729","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/users\/16"}],"replies":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/comments?post=301729"}],"version-history":[{"count":1,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/301729\/revisions"}],"predecessor-version":[{"id":301730,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/posts\/301729\/revisions\/301730"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media\/301727"}],"wp:attachment":[{"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/media?parent=301729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/categories?post=301729"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/english.insurancekhabar.com\/ikbrapi\/wp\/v2\/tags?post=301729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}