Hulas Finserv Hire Purchase Limited Proposes IPO at Rs 358.85

Hulas Finserv Hire Purchase Limited (HFHPL) has applied to the Securities Board of Nepal seeking approval to issue initial public offering (IPO) at a premium rate. The company has proposed to float 20,75,000 units at Rs 358.85 per unit, including a premium of Rs 258.85 and Rs 100 face value.

Through the offering, the company aims to raise Rs 74,46,13,750. NMB Capital has been appointed the issue manager for the proposed IPO.  The company’s current paid-up capital stands at 80 crore.

Established in 2012 and converted to public company in 2021, Hulas Finserv Hire Purchase Limited, a member of Golchha Group,  is the first Limited Non-Banking Financial Company licensed by Nepal Rastra Bank. The company specialises in providing Insta Finance solutions. The company claimed that it has successfully financed over 100,000 vehicles so far. Shekhar Golchha serves as the managing director of the company.

ICRA Nepal has upgraded the company’s long-term loan rating of Hulas Finserv Hire Purchase Limited (HFHPL) from [ICRANP] LBB+ (pronounced ICRA NP L Double B Plus) to [ICRANP] LBBB- (pronounced ICRA NP L Triple B Minus). The company’s short-term loan rating has also been upgraded from [ICRANP] A4+ (pronounced ICRA NP A Four Plus) to [ICRANP] A3 (pronounced ICRANP A Three).

Issuers with this rating signifies a moderate degree of safety regarding the timely servicing of financial obligations.

HFHPL is promoted by Hansraj Hulaschand and Company Private Limited with 82% share (a unit of Golchha Organization and authorised dealer of Bajaj bikes for Nepal). The remaining 18% stake is held by other forty-five shareholders including Hulas Auto Craft Private Limited (assembling unit of Bajaj branded two wheelers and three wheelers) with 5% stake, Him Electronics Private Limited (one of the authorised importer and distributor of Samsung mobiles, Samsung home appliances and consumer electronics) with 2% stake, among others. Shekhar Golchha holds 5% stake in the company.