Ncell, a private telecommunications service provider of Nepal, has transformed into a public company. Ncell has officially registered itself as Ncell Axiata Limited at the Registrar’s office. As a public company, Ncell will issue its shares to the public from its IPO later.
Ncell started as a private mobile service provider in 2004 in Nepal with the name Mero Mobile. Later, the parent company, Telia Company re-branded it as Ncell Private Limited in 2010. Axiata group bought the Ncell brand in 2016, and now in 2020, Ncell has become Ncell Axiata Limited. Let us take a look at the journey of Ncell from a private company to a public company with a closer glimpse.
Ncell is the first private telecommunications company that entered the telecommunications market, which was ruled by Nepal telecom at that time. The company put forward its own approach, to begin.
Ncell launched a single rate tariff applicable all over Nepal. It was the first to introduce data service and various latest smartphone solutions in Nepal. Slowly but steadily, Ncell developed itself into a leading telecommunications company that became the 4th largest taxpayer and the number one foreign investment company in Nepal.
Ncell gave a tough competition to Nepal Telecom by bringing the latest and innovative business ideas to improve Nepal’s business environment, infrastructure, and economy. The GSM mobile operator has gained above 16 million consumers and earns about 50 billion in revenue annually.
They have also contributed a lot to the development of mobile broadband in the country. The company has expanded its mobile network (2G, 3G, 4G) to all major parts of the country. It also focuses on enterprise business and has also provided digital services like Microsoft services.
Ncell faced a lot of challenges in its journey. Ncell always thrived to bring something new to its customers. Thereby, Ncell introduced YouTube Go in Nepal. Similarly, the short-lived Yonder Music was also introduced by Ncell in Nepal.
Ncell launched the iflix video streaming service in Nepal, which unfortunately got shut down a few months ago. It is still not clear whether iflix closed its operation in Nepal or it’s just the end of the Ncell-iflix collaboration. Though Ncell had to bear a massive loss due to coronavirus pandemic, Ncell didn’t hold itself from contributing to the nation. It offered several services to the users even during the lockdown.
The company recently shifted its operations to the new Icon building at Lainchaur. This new scintillating building will serve as Ncell’s corporate office and headquarters. Meanwhile, they will use the previous HQ of Ncell at Nakkhu as a data center for all of its telecom equipment.
The company applied for the transformation into a public company at the beginning of 2075 BS. The process disrupted as Ncell got embroiled in a capital gain tax dispute. Finally, Ncell can operate as a public company with the name Ncell Axiata Limited.
Its major investor is Malaysian company Axiata having 80 percent ownership and Bhavana Singh Shrestha as a local partner with 20 percent. Ncell will issue its 20% share to the public.
After the amendment of the Companies Act 2063, the telecommunication companies with a paid-up capital of more than Rs. 50 million have to go public. Since Ncell is a company with a paid-up capital of Rs 100 million, Ncell is a registered public company. Ncell is now planning to issue an Initial Public Offering (IPO). Read how to apply IPO using mero share.
Source: https://www.nepalitelecom.com/2020/08/ncell-is-now-a-registered-public-company.html