Kamal Swastik Laghubitta Bittiya Sanstha Limited has officially issued an offer letter for its upcoming Initial Public Offering (IPO), specifically targeting Nepalese citizens working abroad.
IPO Timeline for Foreign Investors
The first phase of the IPO will open from Ashad 27, 2082, and will close on Shrawan 9, 2082. Importantly, the early closing date is final and will not be extended for any reason for overseas applicants.
Share Structure and Allocation
Swastik Laghubitta’s total capital stands at NPR 5.77 Crores. The company plans to issue 40% of this capital, which equals 231,000 unit shares, valued at NPR 2.31 Crores, to the general public in the future.
Out of these 231,000 public shares:
- 10% (23,100 shares) are reserved for Nepalese citizens working abroad.
- 5% (11,550 shares) are allocated to mutual funds.
- 0.5% (1,155 shares) are kept aside for company employees.
- The remaining 1,84,500 shares will be issued to the general public at a later date.
Profit and Loss Account (as per Nepal Accounting Standards – NAS)
Issue Manager and Application Guidelines
Nabil Investment Banking Limited has been selected as the official issue manager for this IPO. Investors can apply for a minimum of 10 shares and a maximum of 5,000 shares during the issuance period.
Net Worth after Issuance (as adjusted in case of consolidated basis)
Credit Rating Downgrade
ICRA Nepal has downgraded the credit rating of Swastik Laghubitta, changing it from [ICRANP-IR] B+@ to [ICRANP-IR] B@. The outlook remains under ‘Watch with Negative Implications’, indicating concerns regarding the company’s financial health. However, this rating only reflects the company’s overall creditworthiness and not any specific financial instrument.
Company Background and Financial Health
Swastik Laghubitta Bittiya Sanstha Limited was established in October 2018 and started operations in Madhesh Province from March 2019. It is a Class-D microfinance institution, with its head office located in Lahan, Siraha.
| Financial Indicator | FY2024 | Q1 FY2025 / As of Mid-Oct 2024 |
| Net Profit/Loss | Net loss of NPR 1.38 million | Net loss of NPR 0.03 million |
| Year-over-Year Change | 138% decline | – |
| Asset Base | NPR 613 million | NPR 703 million |
| Gross Non-Performing Loans (NPL) | – | 11.15% |
| Capital Adequacy Ratio (CRAR) | – | 8.97% |
