IPO Issue of Salapa Bikas Bank Limited Closing Today; Oversubscribed 16.03 Times So Far

Salapa Bikas Bank Limited is closing the issue of 14,39,179 units of IPO shares at a par value of Rs 100 from today, the 20th Poush, 2082. The issue was opened for the general public on 16th Poush, 2082.

The issued capital of the company is Rs. 52.23 Crores. Of this, 33%, i.e., 17,23,880 unit shares, will be issued to the public. Of this general public issue, 10%, a total of 1,72,388 unit shares, were already allotted to the Nepalese citizens working abroad.

Of the general public issue, 0.50%, i.e., 26,119 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 86,194 units, have been set aside for the mutual funds. The remaining 1,439,179 units that have been opened for subscription to the general public will be closed from today.

Muktinath Capital 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 25,000 units.

According to CDSC, 19,62,069 applicants have applied for 2,30,80,430 units. Thus, the issue has been oversubscribed 16.03 times.

Infomerics Credit Rating Nepal Limited has assigned an issuer rating of IRN B (Is) [Single B (Issuer)], indicating a high risk of default in the timely repayment of financial obligations.

Salapa Bikas Bank Limited (SBBL), a “B” Class development bank licensed by Nepal Rastra Bank, is a one-district regional bank based in Khotang with 6 branches and its head office. Incorporated on July 16, 2012, it began commercial operations the same year. Promoted by individuals from diverse backgrounds, the major shareholders as of mid-October 2024 are Mr. Dhan Prasad Rai (0.61%) and Mr. Manindra Rai (0.50%). The bank has a paid-up capital of NPR 350 million, entirely held by its promoters.