Salpa Development Bank to Issue IPO to the General Public from Poush 16

21st December 2025, Kathmandu

The financial landscape of the Khotang district is set for a significant transformation as Salpa Development Bank Limited prepares to enter the national capital market. The bank has officially announced the second phase of its Initial Public Offering which is specifically designated for the general public in Nepal. Starting from Poush 16 2082 interested investors will have the opportunity to purchase ordinary shares in this regional development bank. This move follows a successful first phase of issuance that was exclusively targeted at Nepalese citizens employed abroad a category that has become increasingly important for the capital formation of domestic financial institutions.

Salpa Bank IPO Issue

The issuance represents a critical milestone for Salpa Development Bank as it transitions from a promoter held entity to a public limited company. By opening its doors to public investment the bank is not only raising essential capital for expansion but also providing an opportunity for ordinary citizens to become stakeholders in a growing financial institution. For the residents of Khotang where the bank is rooted this IPO offers a unique chance to invest in a local business that understands the specific economic needs of their community.

CORE DETAILS OF THE PUBLIC SHARE OFFERING

Under this latest public issuance Salpa Development Bank will be offering a total of one million four hundred and thirty nine thousand one hundred and seventy nine ordinary shares to the general public. These shares are priced at a par value of one hundred Nepalese rupees per unit. The total size of the public offering is part of a larger plan to issue approximately thirty three percent of the total issued capital of the bank to the public. In total the bank has received permission from the Securities Board of Nepal to issue one million seven hundred and twenty three thousand eight hundred and eighty shares which translates to a total value of one hundred and seventy two point three eight million rupees.

The subscription period for the general public is scheduled to begin on Poush 16 2082 and will remain open until Poush 20 2082. If the issue remains undersubscribed during this initial four day window the deadline may be extended as per the standard regulations of the capital market. However given the high demand for IPOs in Nepal recently most market analysts expect the issue to be oversubscribed within the first few days. Investors are required to apply for a minimum of ten shares meaning the entry point for investment is a modest one thousand rupees. For larger investors the bank has set a maximum application limit of twenty five thousand shares.

THE ROLE OF MUKTINATH CAPITAL AS ISSUE MANAGER

To ensure a smooth and transparent issuance process Salpa Development Bank has appointed Muktinath Capital Limited as its official issue and sales manager. Muktinath Capital is a well known merchant banker in Nepal with a strong track record of managing public offerings for various financial institutions and hydropower companies. Their role involves managing the documentation process coordinating with the Securities Board of Nepal and overseeing the allotment of shares once the subscription period ends.

Investors can submit their applications through the C ASBA system which is integrated with most commercial and development banks in Nepal. This digital system allows for a seamless application process where the funds are blocked in the bank account of the investor and only deducted once the shares are successfully allotted. The use of the Mero Share portal further simplifies this process allowing individuals to apply for the IPO from their computers or mobile devices without having to visit a physical bank branch.

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REGULATORY APPROVAL AND CREDIT RATING INSIGHTS

The path to this IPO began on Baisakh 23 2082 when the bank submitted its formal application to the Securities Board of Nepal. After a thorough review of the financial health and corporate governance of the bank SEBON granted its final approval on Mangsir 8 2082. This approval is a testament to the fact that the bank has met the rigorous disclosure requirements and regulatory standards set by the capital market authority.

In preparation for the public offering the bank underwent a credit rating process conducted by Infomerics Credit Rating Nepal Limited. The agency assigned an issuer rating of IRN B which indicates a specific level of credit risk associated with the institution. While development banks in the regional category often carry different risk profiles compared to larger commercial banks this rating provides potential investors with an independent assessment of the financial stability of the firm. It is essential for investors to read the full prospectus and understand the risk factors before committing their capital.

HISTORY AND OPERATIONAL FOCUS OF SALPA DEVELOPMENT BANK

Salpa Development Bank Limited has its roots deep in the hills of Eastern Nepal. With its head office located in Diktel Khotang the bank is classified as a one district regional development bank. Since its establishment in 2012 the institution has focused on providing essential banking services to the rural population of Khotang. Its operational area is currently limited to this single district where it operates six branches. This local focus has allowed the bank to build a loyal customer base and a deep understanding of the local agricultural and small business sectors.

The bank serves as a vital financial link for the farmers and small scale traders of the region who often have limited access to the services of larger Kathmandu based banks. By providing microloans savings accounts and remittance services Salpa Development Bank has played a key role in the economic development of Khotang. The capital raised through this IPO will likely be used to strengthen the digital infrastructure of the bank and potentially expand its service offerings to include more specialized lending products for the local community.

CONCLUSION AND FUTURE OUTLOOK

The upcoming IPO of Salpa Development Bank is a significant event for the Nepalese banking sector and a major opportunity for retail investors. By offering nearly one point four million shares to the general public the bank is inviting a new generation of shareholders to participate in its success. As the Poush 16 opening date approaches investors should ensure that their Demat accounts are active and their CRN numbers are ready. This public issuance marks the completion of the transition of the bank to a public entity and sets the stage for its future growth and contribution to the regional economy of Nepal.

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