Swastik Laghubitta IPO Opens for Foreign Nepalese Immigrants from Today

Swastik Laghubitta Bittiya Sanstha Limited has officially opened its IPO for foreign Nepalese immigrants from today, 27th Ashad 2082. The early closing date is 9th Shrawan 2082, and this issue period will not be extended under any condition for this group of applicants.

Share Allocation Details

The company plans to issue 231,000 unit shares worth NPR 2.31 crores to the public. Out of this total public issue:

• 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 for the company’s employees.
• The remaining 195,195 units will be issued later to the general public.

Nabil Investment Banking Limited is managing the IPO process. Applications can be submitted for a minimum of 10 units and a maximum of 5,000 units.

Company Profile and Performance

Swastik Laghubitta Bittiya Sanstha Limited, established in October 2018, operates as a class-D microfinance company headquartered in Lahan, Siraha, and primarily serves the Madhesh Province.

Despite growth in assets—from NPR 613 million in FY2024 to NPR 703 million in Q1FY2025—the company faced financial setbacks. It reported a net loss of NPR 1.38 million in FY2024 and a further loss of NPR 0.03 million in the first quarter of FY2025. The company’s non-performing loan (NPL) ratio stands at 11.15%, while its capital adequacy ratio (CRAR) is 8.97% as of mid-October 2024.

ICRA Nepal Downgrades Credit Rating

ICRA Nepal has downgraded the issuer rating of Swastik Laghubitta from [ICRANP-IR] B+@ to [ICRANP-IR] B@, keeping it under Watch with Negative Implications. This rating reflects the company’s overall creditworthiness but does not apply to individual financial instruments.