FPO Issue of Vijaya Laghubitta Bittiya Sanstha Limited Closing Today; Oversubscribed 51.67 Times So Far

Vijaya Laghubitta Bittiya Sanstha Limited (VLBS) is closing the issue of its 4,66,817 unit FPO shares at a par value of Rs. 100 from today, i.e.,24th Poush, 2082. The issue opened on the 21st Poush, 2082.

According to the Banks and Financial Institutions Act of 2073 and the NRB, at least 30% of the issued capital should be retained by public shareholders for the company to issue 4,66,817 units of FPO shares to the general public. At present, the promoter: public share structure is a 74.39:25.61 ratio, which, after this FPO, will be a 70: 30 ratio.

The company is closing the issue of 4,66,817 unit shares from today. The company had issue shares at Rs 100 face value, and intends to collect Rs 4.66 Crores from this FPO. NMB Capital Limited has been appointed as the issue manager for the FPO issuance. Applications can be placed for a minimum of 10 units and a maximum of 1,000 units.

According to CDSC, a total of 20,70,193 applications have been submitted for 2,41,23,800 units, showing that the issue has been oversubscribed by 51.67 times.

ICRA Nepal has downgraded the issuer rating of Vijaya Laghubitta Bittiya Sanstha Limited from [ICRANP-IR] B+ to [ICRANP-IR] B, with the rating remaining on ‘Watch with Negative Implications’. This rating indicates a high risk of default in the timely servicing of financial obligations. The rating reflects the company’s overall creditworthiness and is not linked to any specific debt instrument.

Incorporated in 2012 and operational since 2013, Vijaya Laghubitta Bittiya Sanstha Limited (VLBS) is headquartered in Dhulikhel, Kavre, with 135 branches across 44 districts as of mid-October 2025. Major promoters include Goodwill Finance (~11% stake) and Kumari Bank (~7% stake). VLBS merged with Naya Sarathi Laghubitta Bittiya Sanstha in July 2023 on a 1:1 share swap ratio. Post-merger, public shareholding fell to ~26%, prompting a proposed FPO to restore it to 30%. The company reported a net profit of NPR 32 million in Q1 FY2026, with total assets of NPR 11,306 million, gross NPLs at 13.6%, and a CRAR of 9.6%.

VLBS LTP stands at Rs. 765.00.