Narayani Development’s Unallocated Shares on Sale
23rd January 2026, Kathmandu
Narayani Development Bank Limited has officially announced the re-sale of its unallocated right shares through a sealed-bid open auction process. Starting from Magh 18, 2082 (February 1, 2026), the bank is offering these shares to the general public, existing promoters, and institutional investors. This move is part of the ongoing efforts of the bank to recapitalize and meet the regulatory capital requirements set by Nepal Rastra Bank.
Narayani Development’s Unallocated Shares
The bank had previously issued right shares in a 1:1 ratio from Ashoj 2 to Kartik 9, 2082. During that initial allocation, a total of 603,162 shares under the promoter group remained unsubscribed. These shares were first put up for auction in late 2081, but the market response was only partial, with just 296,565 units being sold. Consequently, a total of 306,597 unallocated promoter right shares still remain on the block, leading to this fresh auction call.
Understanding the Auction Terms and Pricing
For investors looking to participate in this auction, Narayani Development Bank has set clear guidelines to ensure a transparent bidding process.
Minimum Bid Price: The base price is fixed at 100 rupees per share. Bidders must propose a price equal to or higher than this amount.
Minimum Application Quantity: Investors are required to apply for a minimum of 100 units (kitta).
Maximum Application Quantity: There is no upper limit on the number of shares an individual or institution can request, provided they abide by the cross-holding and shareholding limits prescribed by Nepal Rastra Bank for “B” class financial institutions.
Eligibility: Unlike the initial right share issue, this auction is open to the general public, existing promoters, and various companies or institutions.
Important Dates and Application Procedure
The auction window is strictly defined, and late submissions will not be entertained by the sales manager.
Opening Date: Magh 18, 2082 (February 1, 2026)
Closing Date: Falgun 4, 2082 (February 15, 2026)
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Submission Time: During banking hours on the specified days.
Global IME Capital Limited, located in Naxal, Kathmandu, has been appointed as the issue and sales manager for this auction. To facilitate investors outside the capital, bid application forms can be obtained and submitted at the following Global IME Bank branches:
- Biratnagar
- Adarshanagar, Birgunj
- Hetauda
- Narayangadh, Chitwan
- New Road, Pokhara
- Milan Chowk, Butwal
Financial Context and Institutional Profile
Narayani Development Bank (NABBC) is a regional-level “B” class development bank with its corporate office in Bharatpur, Chitwan. The bank has recently faced challenges regarding its capital adequacy ratio (CAR). According to recent ICRA Nepal reports, the bank’s capital-to-risk-weighted assets ratio has been under pressure, falling below the regulatory minimum of 11 percent.
The success of this auction is critical for the bank for several reasons:
Recapitalization: The funds raised will help the bank move toward the mandatory paid-up capital requirement of 500 million rupees for regional development banks.
Business Expansion: Improving the capital base will allow the bank to lift certain lending restrictions imposed by the central bank and resume normal credit operations.
Asset Quality: The bank is currently focusing on recovering Non-Performing Loans (NPLs), which stood at roughly 43 percent in early 2025. Strengthening the equity base provides a buffer against these legacy assets.
Why Investors Consider Auction Shares
Auction shares often represent an opportunity for strategic investors to acquire a significant stake in a company at a price that may be lower than the prevailing market price on the Nepal Stock Exchange (NEPSE). As of late January 2026, the market price of NABBC has shown volatility, making the auction’s floor price of 100 rupees an interesting entry point for long-term value seekers.
However, bidders should perform their own due diligence. Since these are promoter shares, they carry certain restrictions regarding their lock-in period and future tradability on the secondary market compared to ordinary public shares.
Conclusion
The Narayani Development Bank auction is a vital step in the turnaround strategy of the institution. By opening the remaining 306,597 shares to the public, the bank aims to finalize its capital-raising mission and stabilize its financial position. For investors, the period between Magh 18 and Falgun 4 offers a chance to participate in the growth of a regional financial institution at a foundational price level.
