July 22, 2019 | Investopaper
Global IME Bank Ltd. (GBIME) emerged after successful merger of Global Bank Ltd., IME Financial Institution and Lord Buddha Finance Ltd. in the year 2012. Then after, the bank has merged with several financial institutions (i.e. Social Dev. Bank & Gulmi Bikas Bank, Commerz and Trust Bank in 2013 and 2014 respectively) to boast a capital of 10.31 billion right now.
Lately, it has also acquired Hathway Finance and signed a merger agreement with Janata Bank. Post the settlement of merger with Janata Bank, it will be the biggest bank of Nepal in terms of paid-up capital hitting 17.11 Arab figure. The company has increased its capital by providing bonus shares to its shareholders from the profit of the company on a regular basis. The capital has increased by 2.53 times through bonus share distribution from the year starting 2013.
Price History of Global IME Bank
The figure above shows the stock price history of Global IME Bank. The maximum price attained by Global IME is Rs. 753 in July 2014 when Nepse index above 1000 points. When Nepse crossed 1800 points during the bullish year 2016, the maximum recorded price was Rs. 600. The lowest recorded price in this time frame is Rs. 257 in February 2019 when the Nepse index declined to 1100 points.
The price of the company looks consistent if we look at the chart. This is because there is not so significant difference between average price, highest price and lowest price on a yearly basis. The company has decent earnings to satisfy its shareholders through the distribution of dividend. As of the third quarter of FY 2075/76, the net profit of the company stands at Rs. 1.87 Arab. Likewise, the company distributed 16 percent bonus to its shareholders from the last year profit.
Return to Investors
If you had bought 100 shares of Global IME at Rs. 411 ( total cost 41,100 excluding other fees) at the beginning of 2013, your 100 unit shares would have increased to 253 units. Since the last traded price of the company in the Nepalese stock market is Rs. 295, your total worth would be Rs. 74,635. So your worth has increased by around 82 percent in this time period.