Swastik Laghubitta Issuing IPO Shares to Foreign Nepalese Immigrants from Ashad 27

Swastik Laghubitta Bittiya Sanstha Limited has published an offer letter to issue an Initial Public Offering (IPO) to Foreign Nepalese Immigrants.

The IPO issue for the Foreign Nepalese Immigrants will open from the 27th Ashad to the 9th Shrawan, 2082. Note that the issue will not be extended from the early closing date for Nepalese citizens working abroad.

The issued capital of the company is Rs. 5.77 Crores, of which 40%, i.e., 231,000 unit shares worth Rs. 2.31 Crores, will be issued later for the general public. Of this public issue, 10% of the shares, totaling 23,100 unit shares, have been allocated for Nepalese citizens working abroad, the issue of which will open on the date mentioned above.

Out of the total 231,000 units, 11,550 (i.e., 5% of 231,000) have been set aside for mutual funds, and 1,155 (i.e., 0.5% of 231,000) units have been set aside for the company's employees. The remaining 18,45,000 units are for the general public, which will be issued later.

Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 5,000 units.

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%.

Offer Letter