Swastik Laghubitta Bittiya Sanstha Limited is set to launch a public share offering (IPO). In the initial phase of the IPO, the firm intends to distribute 23,100 shares (10 percent allocated to the general public) to Nepalis employed abroad starting from Ashad 27, 2082 BS. This first phase of the IPO will wrap up on Shrawan 9, 2082 BS. Foreign-employed Nepali individuals interested in participating may apply for at least 10 shares and a maximum of 5,000 shares.
Following this initial phase, the company will extend share offerings to the general public, inclusive of mutual fund programs and its employees during the second phase. In total, combining both phases, Swastik Laghubitta will offer 231,000 shares in the IPO. With a par value of Rs. 100, the public offering totals Rs. 2.31 crores. To facilitate this process, the Securities Board of Nepal (SEBON) granted the company permission on Ashad 5, 2082 BS. The microfinance institution had originally submitted its application on Magh 24, 2080 BS. Only with the board’s approval can the company proceed to offer shares to the public.
The organization has designated Nabil Investment Banking Limited as the issue and sales manager. A formal agreement for the public offering has been established between the company and Nabil Investment Banking Limited. Mr. Dhirendra Lal Karn, CEO of Swastik Laghubitta Bittiya Sanstha Limited, and Mr. Manish Narayan Joshi, CEO of Nabil Investment Banking, signed this agreement. Post-IPO (if fully subscribed), the public will own 40 percent of the company’s shares, while the promoters will retain the remaining 60 percent.
About Swastik Laghubitta Bittiya Sanstha Limited, this institution is a provincial-level micro-finance entity licensed by the Nepal Rastra Bank, commencing its operations on March 26, 2019. It currently offers microfinance services within Madhes Province. As of Jestha’s end 2082 BS, the microfinance has accrued a paid-up capital of Rs. 3.46 crores.
