Salapa Bikas Bank Completes IPO Allotment, Raises Rs. 52.23 Crore from Public
KATHMANDU: Salapa Bikas Bank Limited (SBBL) concluded the allotment of its Initial Public Offering (IPO) today at the offices of its issue manager, Muktinath Capital Limited in Narayanchaur, Naxal.
The bank had offered 1,439,179 units to the general public from 16th to 20th Poush, 2082, as part of its plan to raise Rs. 52.23 crore in capital. Of the total issue, 33% (17,23,880 units) was allocated to the public, including 10% (1,72,388 units) for Nepalese citizens working abroad, 0.5% (26,119 units) for employees, and 5% (86,194 units) for mutual funds.
The IPO drew 22,65,955 valid applications requesting a total of 25,477,260 units, while 34,597 applications for 4,28,660 units were disqualified. According to the allotment results, 143,917 applicants received 10 units each, while 9 applicants were allotted 11 units.
The IPO result is accessible through CDSC IPO Result, MeroShare, and Muktinath Capital Limited.
SBBL is a “B” Class development bank, licensed by Nepal Rastra Bank, operating primarily in Khotang district with six branches and its head office. Incorporated on 16 July 2012, the bank started 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%), with the total paid-up capital of NPR 350 million held entirely by promoters.
Infomerics Credit Rating Nepal Limited has assigned the bank an issuer rating of IRN B (Is) [Single B (Issuer)], indicating a high risk of default in timely repayment of financial obligations.
