Swastik Laghubitta Bittiya Sanstha Limited has officially completed the allotment of its Initial Public Offering (IPO). The allotment program was conducted at the office of the issue manager, Nabil Investment Banking Limited, Naxal, Kathmandu.
The company had opened the IPO for the general public from 30th Shrawan, 2082 to 3rd Bhadra, 2082, issuing a total of 1,95,195 units worth NPR 1.95 crore.
IPO Details and Allocation
The company’s total issued capital stood at NPR 5.77 crore. From this, 40 percent, equivalent to 2,31,000 shares, was allocated for public investors, with the distribution structured in the following manner:
| Category | Units Allocated | Percentage |
|---|---|---|
| Nepalese citizens working abroad | 23,100 | 10% |
| Mutual funds | 11,550 | 5% |
| Company employees | 1,155 | 0.5% |
| General public | 1,95,195 | Balance |
| Total Public Issue | 2,31,000 | 100% |
Subscription and Allotment
The IPO received overwhelming interest from investors. In total, there were 24,36,393 valid applications requesting 2,74,18,540 units, far exceeding the available quantity. An additional 2,300 applications were found invalid.
Due to the oversubscription, allotment was done through a lottery system. As per the result:
19,519 applicants received 10 units each
5 applicants received 1 unit each
Investors can check their allotment results through CDSC IPO Result, MeroShare, or Nabil Investment Banking Limited.
Credit Rating Update
Swastik Laghubitta’s issuer rating has been revised downward by ICRA Nepal, shifting from [ICRANP-IR] B+@ to [ICRANP-IR] B@, and it remains on “Watch with Negative Implications.” This rating indicates a cautious outlook on the company’s financial strength, though it does not apply to any specific debt instrument.
Company Overview & Financials
Established in October 2018, Swastik Laghubitta is a class-D microfinance institution. The company commenced operations in Madhesh Province in March 2019 and is headquartered in Lahan, Siraha.
The company’s recent financial performance shows challenges:
| Financial Indicator | FY2024 | Q1 FY2025 |
|---|---|---|
| Net Profit/Loss | -NPR 1.38 million | -NPR 0.03 million |
| Asset Base | NPR 613 million | NPR 703 million |
| Gross NPL (as of mid-Oct 2024) | 11.15% | – |
| Capital Adequacy Ratio (CRAR) | 8.97% | – |
Despite a growing asset base, the company has been facing losses and high non-performing loans, which remain key concerns for its future growth.
Swastik Laghubitta IPO Allotment Result
