NIRMAL PRADHAN THE KING OF NEPAL STOCK MARKET “HE WAS ALMOST DONE, HE WOKE UP LIKE THIS”.

In 2055, most investors who had invested in shares had to face a significant decline in the market during 2057–58. They experienced substantial losses during this period. Many investors, including myself, suffered considerable losses. However, not many of them were able to recover in the stock market during that time. Due to the fear of facing further losses, most of them did not reinvest in the share market. It seems that the reason for not re-entering the share market was the lack of confidence in investing again. Personally, despite the challenges and risks, I am committed to re-entering the share market with the determination to recover the money I lost, understanding that this journey is not easy.

I had purchased shares with the intention of repaying the loan taken from the bank at a lower rate than the purchase price during that time. For instance, I had bought shares of Bank of Kathmandu at a rate of 1500 per share, but when it came time to sell, I had to sell them at a mandatory price of 2200 per share. Similarly, I had to sell shares of Nabil Bank at 195 per share instead of the 800 I had purchased them for, while Nepal Bangladesh Bank’s shares, initially bought at 360 per share, had dropped to 400, and shares of Nabil Bank and Standard Chartered Bank had fallen to 465 and 900 per share, respectively.

During the crisis, I faced hardships with the banks and some friends and family. I appreciate the significant support and encouragement I received from Vinod Chaudhary and Satyanandpyara Shrestha. Vinod Chaudhary facilitated some loan availability through his bank. He asked me how much loan I needed, and I requested a loan of 25 lakhs, keeping a stable cinema building in Thamel as collateral, and informed him that I required an additional 2 crores against the same collateral. Vinod Chaudhary positively accepted my proposal, and Satyanandpyara Shrestha, upon visiting my home, said, “Nirmal Pradhan is a member of my family, we must provide him with the loan.” After that, the bank conducted a revaluation of my property (land and cinema building), and at that time, approved a loan of 2 crores at a 9% interest rate.

After obtaining the loan, I met with my financial advisors and stock market experts to seek advice on which company’s shares to invest in. They suggested not hesitating to buy shares of Everest Bank. Accepting this advice, I proceeded to purchase shares of Everest Bank. Initially, I had 300 shares of Everest Bank, and later, I increased it to 1,200 rupees per share, eventually acquiring a significant number of Everest Bank shares. During the time I invested heavily in Everest Bank shares, the conditions of Nabil and Standard Chartered were quite strong. Some friends even questioned why I shifted from a good bank like Ramro Bank to Everest. I responded, “I have faith in Everest, that’s why I have invested in Everest Bank shares.” My mentor had given me the insight that Everest Bank shares would perform well in the future, which influenced my decision to buy 200,000 shares of Everest Bank and 200,000 shares of Nabil Bank.

I not only bought more than 200,000 shares but also received bonus shares, increasing the total number of shares. After some time, the 200,000 shares I initially purchased increased to 1 million shares. The various schemes offered by the bank also contributed to the increase in the number of shares I acquired.

At that time, we were able to obtain shares on credit up to 90%. Utilizing my entire wealth as collateral, I continued to purchase shares in millions. I kept acquiring shares to the best of my capacity. I also encouraged other investors to buy Everest Bank shares at the rate of 750 rupees per share. After six months, I, along with my associates, further increased our investment in Everest Bank shares to 1,000 rupees per share through a written agreement. I had surpassed the performance of other banks by investing in Everest Bank shares.

During the six-month period, the share price of Everest Bank had reached a peak of 1,200 rupees per share. Following that success, I proposed to my associates to sell me 12,000 shares at a profit of more than 200 rupees per share. If they agreed, I promised them a profit of 200 rupees per share over 1,000 rupees. If not, I suggested holding onto the shares for future profits. To everyone’s surprise, within the next six months, the share price of Everest Bank soared to 1,700 rupees per share from the previous 1,200 rupees per share. Subsequently, I urged my associates to sell me 12,000 shares, offering them a profit of 200 rupees per share over 1,000 rupees.

Those who did not sell their shares did not only lose the opportunity for profit but also missed the chance to secure future gains. Within another six months, the share price climbed to 1,700 rupees per share from the initial 1,200 rupees, and my persistent efforts made my associates wealthy, turning them into millionaires and billionaires.

My strategy to attract investors towards the stock market proved successful. I maintained a margin of only 10% for the banks, focusing on channeling the credit flow into share investments. At that time, many banks held shares as collateral for loans, creating a flow of funds into the stock market.

I initiated the process of obtaining a 3.25% share loan from Rastriya Banijya Bank and a 5.75% share loan from Nepal Bank. I provided training to the managers of Nepal Bank on how to facilitate share loans. Subsequently, while other banks were offering a share loan interest rate of 6.25%, I negotiated and secured it at 5.75%.

Afterward, the share prices increased tenfold. I bought Everest Bank shares at 300 rupees per share, and their value reached 3,000 rupees per share. Similarly, Standard Chartered Bank shares, purchased at 1,500 rupees, soared to 9,000 rupees per share. Shares acquired in the range of 6 to 7000 rupees rose to an altitude of 7,000 rupees.

Shares of NCC Bank, bought at 100 rupees, reached 600 rupees. At that time, many banks and financial institutions were not listed on the market; only around seven banks and four financial companies were officially listed.

During that period, I arranged to purchase 200,000 Kumari Bank IPO shares. Later, I sold Kumari Bank shares at a rate of up to 2,000 rupees per share. Similarly, I acquired 400,000 shares of Laxmi Bank at a rate of 100 rupees per share.

At that time, people could apply for shares in the name of their spouses and children, enabling them to acquire more shares. Despite the high demand for attractive shares, the applications exceeded twice the availability. Investors were able to secure only up to 50% of their applied shares.

In contrast, we applied for 10 times more shares than the 50 lakh shares available in the 50 crore rupees IPO. We managed to secure about 25% of the applied shares. During that time, banks and financial institutions did not seek citizenship from those purchasing shares; the name alone was sufficient.

Upon reflection, I consider myself fortunate to have seized opportunities during times of crisis. These opportunities and successes are why people recognize me today as a prominent investor in the share market.

I am a person who has achieved significant success through the stock market. Though I have faced various challenges, I have always sought solutions within the stock market. I believe the blessings of Pashupatinath, the well-wishes of my family, and the support of banks and financial companies have played a crucial role in my success, despite facing numerous challenges.