IPO Proposal of Swastik Laghubitta Bittiya Sanstha Limited Approved by SEBON

The Securities Exchange Board of Nepal (SEBON) has approved the IPO issue proposal of Swastik Laghubitta Bittiya Sanstha Limited.

The company will now issue 577,500 equity shares at a par value of Rs. 100 each. The amount of the issue is Rs. 5.77 Crore.

Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance.

ICRA Nepal has downgraded the issuer rating of Swastik Laghubitta Bittiya Sanstha Limited (SLBSL) from [ICRANP-IR] B+@ to [ICRANP-IR] B@, while maintaining the status as ‘Watch with Negative Implications’. The rating reflects a general opinion on the company's creditworthiness and does not apply to any specific debt instrument.

Swastik Laghubitta Bittiya Sanstha Limited (SLBSL), established in October 2018 and operating in Madhesh Province since March 2019, is a class-D microfinance institution headquartered in Lahan, Siraha. The company reported a net loss of approximately NPR 1.38 million in FY2024, a sharp 138% year-on-year decline, with an asset base of NPR 613 million. In Q1FY2025, it incurred a further net loss of around NPR 0.03 million, with assets rising to NPR 703 million. As of mid-October 2024, SLBSL's gross non-performing loans (NPLs) stood at 11.15%, and its capital adequacy ratio (CRAR) was 8.97%.