First Microfinance Launches Sale of Founder Shares
25th November 2025, Kathmandu
First Microfinance Company Limited has officially announced the sale of a portion of its founder shares, making a total of 186,433 units available to potential investors.
First Microfinance Founder Shares
This strategic move aims to broaden the ownership structure of the company and attract new investment, providing a unique opportunity for interested parties to acquire a stake in the microfinance institution.
Details of the Founder Share Sale
The shares being offered for sale were registered under the names of three individual founding members of the company.
Total Shares on Offer: The company has made available 186,433 founder shares.
Share Origin: These shares were previously registered under the names of three individual founding members. This indicates a voluntary divestment by the founders, a common occurrence as companies mature and seek to rebalance their equity structure.
Minimum Price: The floor price for the sale has been set at NPR 200 per share. This minimum price is double the standard face value of NPR 100 for shares in Nepal, reflecting the underlying value and profitability of the microfinance institution. The final selling price will be determined through a competitive bidding process, typically conducted via an auction method by a licensed merchant banker.
Announcement Date: The sale was officially announced on November 24, 2025.
Importance of Founder Shares in the Market
The sale of founder shares is a notable event in the Nepali share market for several reasons, particularly when the buyer base shifts.
Definition of Founder Shares: Founder shares are the initial equity capital of a company, typically held by the promoters, directors, and the core group of investors who established the business. These shares often constitute the majority of the total paid-up capital and usually have a mandatory lock-in period, meaning they cannot be traded publicly for a specified number of years following the Initial Public Offering (IPO).
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The Lock-in Period: For financial institutions like microfinance companies, founder shares are usually subject to a lock-in period that can extend up to five years after the company begins commercial operation or converts its shares to public shares. The current sale indicates that the mandatory lock-in period for these specific shares has now expired.
Trading Restrictions: While the public can purchase these shares, they are typically sold to existing shareholders or other qualified institutional investors, rather than being openly traded on the Nepal Stock Exchange (NEPSE) immediately after the auction. Once the shares are sold, the buyer usually holds them as founder shares, and they may be subject to further restrictions depending on the institution’s articles of association.
Potential for Conversion: The long-term significance of this sale often lies in the potential for founder shares to be converted into ordinary (public) shares in the future. In Nepal, regulatory bodies have, at times, permitted financial institutions to increase the public-to-founder share ratio, which creates value for the new holders of these founder shares.
Investment Opportunity and Company Growth
This move provides an opportunity for potential investors to secure a position in First Microfinance, a key player in the microfinance sector.
Attracting Investors: Setting the minimum price at NPR 200 ensures that the company attracts investors who recognize the intrinsic value and future growth prospects of the MFI. The successful sale will inject capital into the system, potentially supporting the company’s expansion or capital adequacy requirements.
Microfinance Sector Context: Microfinance companies are essential to Nepal’s financial inclusion goals, providing credit and savings facilities to low-income populations, particularly in rural areas. First Microfinance, operating under the umbrella of Nepal Rastra Bank regulations, benefits from the stable, high-demand nature of this specialized lending market. The performance of these institutions is often measured by their ability to maintain high recovery rates and expand their branch network.
Interested parties wishing to bid on these 186,433 founder shares will need to follow the official auction procedure, likely managed by the company’s designated merchant banker, and submit their applications above the floor price of NPR 200 per share within the stipulated bidding period.
For More: First Microfinance Founder Shares
