Posted by: nagarikreport February 9, 2011
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Ashu makes sense in #7.
However, the question is: Why would a guy with Capital Market background go to Nepal? South Asia is not yet a "Capital Market" market. One day I thought to have fun and run a screen for Investment Banking clients in Nepal. Guess what, my analyst brought me the spreadsheet in the evening and it was very interesting. There was only ONE company that came in the radar of investment banking. Now, should we just do one deal and retire? In a country like India, I found 792 companies; the likelihood of paying the hefty fees of investment bankers is slim. One of the CEOs I was chatting with almost got a heart attack when I told him that our initial consultation fees is $50K USD. He immediatly ran the numbers into Indian Rupees and said he can't afford IB service. Last week, I had a meeting with the CFO of a Chinese publicly traded firm. Although they were sitting on 11Mil USD cash, they were hesitant in paying our discounted retainer fee of $45K. We refused to attend the second round of call. I must say, China has volume in terms of great EBITDA margin companies. But when it comes to capital market activity, it's dormant.
However, the question is: Why would a guy with Capital Market background go to Nepal? South Asia is not yet a "Capital Market" market. One day I thought to have fun and run a screen for Investment Banking clients in Nepal. Guess what, my analyst brought me the spreadsheet in the evening and it was very interesting. There was only ONE company that came in the radar of investment banking. Now, should we just do one deal and retire? In a country like India, I found 792 companies; the likelihood of paying the hefty fees of investment bankers is slim. One of the CEOs I was chatting with almost got a heart attack when I told him that our initial consultation fees is $50K USD. He immediatly ran the numbers into Indian Rupees and said he can't afford IB service. Last week, I had a meeting with the CFO of a Chinese publicly traded firm. Although they were sitting on 11Mil USD cash, they were hesitant in paying our discounted retainer fee of $45K. We refused to attend the second round of call. I must say, China has volume in terms of great EBITDA margin companies. But when it comes to capital market activity, it's dormant.
| Name | Value | Scale | Unit | Simple Growth Rate % | Y-o-Y Change % | Annual % Rate |
| Balance of Payments - Nepal (Quarterly) | -453.32 | Million | US Dollar | - | - | - |
| CPI (Y-o-Y %) - Nepal (Monthly) | 10.45 | Actual | Percentage | - | - | - |
| Current Account Balance - Nepal (Annual) | -256.07 | Million | US Dollar | - | - | - |
| Current Account Balance - Nepal (Quarterly) | -984.88 | Million | US Dollar | - | - | - |
| Current Account Balance (% of GDP) - Nepal (Annual) | -1.65 | Actual | Percentage | - | - | - |
| Exchange Rate - Nepal (Monthly) | 72.56 | Actual | Nepalese Rupee | 0.25 % | (1.26) % | 3.06 % |
| Exports (USD) - Nepal (Monthly) | 75.38 | Million | US Dollar | (1.24) % | 36.35 % | (13.96) % |
| Foreign Currency Reserves - Nepal (Annual) | 1.49 | Billion | US Dollar | 2.60 % | 2.60 % | 2.60 % |
| Foreign Currency Reserves - Nepal (Monthly) | 1.64 | Billion | US Dollar | 3.32 % | 7.86 % | 47.92 % |
| Foreign Currency Reserves - Nepal (Quarterly) | 1.58 | Billion | US Dollar | 5.80 % | 5.62 % | 25.27 % |
| Foreign Currency Reserves (% of GDP) - Nepal (Annual) | 21.47 | Actual | Percentage | - | - | - |
| Foreign Direct Investment Inflows - Nepal (Quarterly) | 17.97 | Million | US Dollar | (44.86) % | 417.10 % | (90.76) % |
| GDP - Nominal - Nepal (Annual) | 522666 | Million | Nepalese Rupee | 2.50 % | 2.50 % | 2.50 % |
| GDP - Real - Nepal (Annual) | 96612 | Million | Nepalese Rupee | 5.80 % | 5.80 % | 5.80 % |
| GDP - Real (Growth - YoY%) - Nepal (Annual) | 5.8 | Actual | Percentage | - | - | - |
| GDP - Real (USD) - Nepal (Annual) | 5644.04 | Million | US Dollar | 5.80 % | 5.80 % | 5.80 % |
| GDP Per Capita - Nominal - Nepal (Annual) | 18477.25 | Actual | Nepalese Rupee | 0.58 % | 0.58 % | 0.58 % |
| Imports (USD) - Nepal (Monthly) | 197.95 | Million | US Dollar | 15.36 % | 1.66 % | 455.52 % |
| Population - Nepal (Annual) | 29.33 | Million | Persons | 1.81 % | 1.81 % | 1.81 % |
| Reserves - Total - Nepal (Monthly) | 1654.79 | Million | US Dollar | 3.30 % | 7.78 % | 47.59 % |
| Trade Balance (USD) - Nepal (Monthly) | -122.57 | Million | US Dollar | - | - | - |