Swastik Laghubitta Bittiya Sanstha Limited is opening its Initial Public Offering (IPO) of 1,95,195 units for the general public from Shrawan 30 to Bhadra 3. This IPO marks a significant milestone as the company aims to raise capital from the public and expand its operations. Here’s a quick overview of the key details investors should know before applying.
Key Details of Swastik Laghubitta IPO
| Particulars | Details |
| IPO Open Date | 30th Shrawan, 2082 |
| Early Closing Date | 3rd Bhadra, 2082 |
| Extended Closing Date (if needed) | 13th Bhadra, 2082 |
| Total Public Issue | 2,31,000 units |
| Units for the General Public | 1,95,195 units |
| Par Value per Share | Rs. 100 |
| Issued Capital | Rs. 5.77 Crores |
| Public Issue Value | Rs. 2.31 Crores |
| Foreign Employment Quota | 23,100 units (10%) |
| Mutual Fund Quota | 11,550 units (5%) |
| Employee Quota | 1,155 units (0.5%) |
| Minimum Application | 10 units |
| Maximum Application | 5,000 units |
| Issue Manager | Nabil Investment Banking Limited |
| Credit Rating | [ICRANP-IR] B@ (Watch with Negative Outlook) |
Utilization of Capital Raised from IPO Issuance
About Swastik Laghubitta Bittiya Sanstha Limited
Swastik Laghubitta is a class-D microfinance institution. It was established in October 2018 and began its operations in March 2019. The company is headquartered in Lahan, Siraha, and primarily serves the Madhesh Province of Nepal.
Its mission is to support low-income groups through financial inclusion and access to microloans. Like many microfinance institutions, Swastik aims to uplift rural communities by offering small-scale financial services.
Financial Health & Performance
Swastik Laghubitta has faced financial challenges in recent periods. In FY2024, the company reported a net loss of approximately NPR 1.38 million, which marked a significant decline of 138% compared to the previous year. By the first quarter of FY2025, it recorded a smaller loss of NPR 0.03 million.
Despite the losses, the company’s total asset base has grown. It increased from NPR 613 million in FY2024 to NPR 703 million in Q1 of FY2025. However, concerns remain about asset quality, as the gross non-performing loan (NPL) ratio stood at 11.15% as of mid-October 2024. This is considered high and indicates credit risk in the loan portfolio.
The capital adequacy ratio (CRAR) was reported at 8.97%, which meets the minimum requirement but leaves little cushion for financial shocks.
Actual and Projected Returns on Net Worth and EPS
Profit and Loss Statement ofĀ Swastik Laghubitta
Credit Rating Update
ICRA Nepal recently revised Swastik Laghubitta’s credit rating. It was downgraded from ā[ICRANP-IR] B+@ā to ā[ICRANP-IR] B@ā, with the rating remaining under “Watch with Negative Implications.” This suggests growing concerns about the institution’s creditworthiness, although it does not reflect any particular debt default.
Ā Conclusion
Swastik Laghubittaās IPO presents a new opportunity for investors interested in Nepalās microfinance sector. While the company has shown growth in its asset base, it is also dealing with financial instability and rising non-performing loans. Investors should carefully assess these risks before making an investment decision.
