Ncell Axiata, the largest private sector telecom service provider, has now become a public company. The Office of the Registrar of Companies has given approval to Ncell to go public on July 5. With this decision, the telecommunication service provider Ncell Pvt. Ltd. has now been transformed into Ncell Public Company.
The name of this company has been changed to Ncell Axiata Limited. Pursuant to Article 13 (1) of the Companies Act 2063, there is a provision to transform a private limited company into a public company.
In addition, Ncell’s shares will now be sold to the public. According to sources, 20 percent of Ncell’s shares will be sold to the public. Soon Ncell Axiata Limited company will issue shares for the public. Most of us know ncell axiata company will be the hot property of the Nepal share market, after ncell Ipo.
The most profitable and tax-paying company in Nepal will create a wave in the capital market. According to stock market insiders, the company’s shares are likely to be the second most valuable after Unilever.
Ncell’s paid-up capital is only Rs 100 million. For its capital increase, the Industrial Promotion Board has to give approval and only after that approval, Ncell’s shares will come to the market.
The Office of the Registrar of Companies has given approval to Ncell to go public on Monday, August 3. Pursuant to Article 13 (1) of the Companies Act 2063, there is a provision to transform a private limited company into a public company.
Telecommunication companies with a paid-up capital of more than Rs 50 million have to go public. Ncell has a paid up capital of Rs 100 million.
With the transformation into a public company, Ncell now has to sell its shares to the public. The company can sell up to 20 percent of its shares to the public. Axiata currently owns 80 percent of Ncell and local partner Bhavana Singh Shrestha owns the remaining 20 percent.
Ncell is also the largest taxpayer company in the fiscal year 2076/77. Ncell has paid Rs 33.95 billion to the government for income tax alone. Ncell had paid Rs 22 billion in profit tax and more than Rs 11 billion in non-profit tax in the previous fiscal year.
Similarly, VAT of Rs 3.21 billion has been paid in the last fiscal year. In the fiscal year 2076/77, Ncell has paid Rs. 37.16 billion in taxes to the government including both income tax and VAT.