National Investment Company of Iran (NICI)


Creation of an organized capital market has now been generally recognized as one of the major factors which can contribute to the country's economic growth.

The best way to create such a market is to mobilize savings of the public as well as extra liquidity and to make sound use of these resources in order to earn maximum possible profit.

In view of the above and in order to provide incentive for extensive participation by the public in the country's economic activities, National Investment Company of Iran (NICI), the country's first investment enterprise, was founded in November 1975 with the initial capital of 10 billion Rials.

In 1976, NICI gained the opportunity of being a listed company in accordance with the Tehran Stock Exchange (TSE) Rules. The company's stocks have been traded at the TSE for 39 years.

Objective:

National Investment Company of Iran (NICI) was established as a quoted Closed-End Investment Fund to assist in achieving the following general objectives:

 

†††††† Wider expansion of industrial ownership among people in order to encourage their participation in country's economic activities thus further strengthening economic stability and productivity.

 

†††††† Better distribution of wealth and income among Iranians through broadening the base of industrial ownership and reducing the risk resulting from concentration of ownership in a single company.

 

†††††† Mobilizing small capital of small investors and encouraging them to invest in productive units and the creation of the facilities needed for efficient utilization of such capital.

 

†††††† Providing the necessary resources for the expansion and acceleration of productive activities in line with the country's economic plans and policies.

 

Investment Policies:

NICI acts as an intermediary between the saving of the public and the country's economy. Using its capital and additional financial resources, which it intends to secure gradually, the company will engage in purchase and sale of shares belonging to public Joint Stock Companies, industrial units, insurance companies, banks and other institutions.

Dividends from these companies as well as capital gains deriving from buying and selling of the shares in the Company's portfolio shall be divided among the company's shareholders. Thus investors in the National Investment Company of Iran will indirectly become shareholders in most Public Joint Stock companies of the country.

From the beginning, NICI focused on trading shares of public joint stock companies in a way that would yield the highest profit with the lowest risk. Given that the selection of which stocks to invest in is highly significant, NICI gave top priority to recruitment of experts who are well-versed in investment techniques and portfolio management.

 

Recommendations offered by the company's experts are based on close study of financial markets, capital market in particular. Therefore, NICI management uses expertsí suggestions to take full advantage of market opportunities, decide on the right stocks and exchange them in due time to maximize profitability.

Moreover, the company will attempt to increase its profitability and reduce the possibility of potential losses to the lowest level by diversifying its portfolio.

NICI's shares are quoted at the Tehran Stock Exchange and can be bought and sold through authorized brokers.

The Brokerage Unit of the NICI has been activated in Tehran Stock Exchange Market and has been providing the applicants with the investment advisory services and assisting them in the field of management and administration of the portfolio.

 

Capital:

NICI has a fully paid up capital of Rials 7,000 Billion consisting of 7,000 million registered shares of Rials 1,000.

The latest configuration of NICI stock holders is shown in figure below:

 

 

NICI at a glance:

 

 

Million

US Dollars

 

Long term Investments

227.6

 

Market Value

561.3

 

Added Value

283.7

 

Working Capital

37.4

 

Book Value

295.8

 

Shares purchased

22.6

 

Shares sold

7.7

 

General expenses

1.4

 

Investment income

72.9

 

Gain of sale of investments

12.8

 

Other income

1.1

 

Number of companies

259

-Listed companies

169

-Unlisted companies

90

Number of seats in board of directors

33

 

NICI investments in the various industry groups

at the end of the fiscal year (Dec. 20, 2014)

 

Industries

Market Value
(million RLS)

Book Value
(million RLS)

Added Value
(million RLS)

1

Metal minerals

809,648

392,443

417,205

2

Other mines quarrying

7,656

2,767

4,889

3

Food products and beverage

1,710,452

622,391

1,088,061

4

Textiles

142,672

30,137

112,535

5

Wood and products of wood and cork

81,913

35,067

46,846

6

Paper and paper products

3,344

4,443

(1,099)

7

Publishing and Printing

117,139

42,859

74,280

8

Coke and refined products

1,342,043

396,411

945,632

9

Chemical and chemical products

3,899,007

1,264,222

2,634,785

10

Rubber and plastic products

177,776

148,963

28,813

11

Non-metallic mineral products

1,139,001

1,002,454

136,547

12

Basic metals

1,734,982

1,150,948

584,034

13

Fabricated metal products

359,481

106,634

252,847

14

Machinery and equipment, not classified

635,699

144,478

491,221

15

Office and computing machinery

1,027

593

434

16

communication equipment and apparatus

232,250

47,958

184,292

17

Motor vehicles

1,716,322

1,339,769

376,553

18

Financial intermediation

2,175,273

889,075

1,286,198

19

Other

554,076

357,078

196,998

20

Total

16,839,761

7,978,690

8,861,071

Exchange Rate : 1 USD = 30,000 RLS

 

Organization chart:

 

 

 

 

 

 

 

 

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