Himalayan Bank Announces Sealed Bid Auction for Pledged Promoter Shares

11th June 2026, Kathmandu

Himalayan Bank Limited has officially issued a 15 day public notice announcing the auction sale of multiple blocks of promoter shares held as collateral against a defaulted share loan.

Himalayan Bank Auctions

The recovery process is being initiated through the Patan Branch of the bank located in Pulchowk, Lalitpur, following repeated non compliance from the borrower. The liquidation will be conducted via a competitive sealed bidding framework, providing an access path for qualified corporate buyers and individual investors to pick up substantial equity blocks in key financial companies.

Exploring the Background of the Loan Default and Borrower Profile

The upcoming asset liquidation is the direct result of a prolonged default on a specialized credit facility backed by equity shares.

The recovery division initiated the public sell off only after the borrower failed to respond to consecutive payment reminders, administrative warnings, and a prior extended timeline notification.

The structural tracking data regarding the default case includes:

Identified Defaulting Borrower: Subash Shrestha, a resident holding permanent registration coordinates in Hetauda, Makwanpur.

Originating Financing Hub: The share-backed credit facility was originally disbursed and managed by the Patan Branch of Himalayan Bank Limited.

Prior Regulatory Notifications: The bank had previously published a formal 35 day repayment notice alongside numerous written and verbal warnings, all of which went unanswered by the debtor.

Because the outstanding loan balance, penalty interests, and administrative dues remain completely unpaid, the executive committee has approved the immediate transfer of ownership of the pledged collateral.

The proceeds generated from the competitive bidding pool will be applied directly against the total liabilities of the borrower on the books of the bank.

Reviewing the Auctioned Equity Portfolio and Core Corporate Volumes

The liquidation pool contains high value promoter units spread across three distinct tiers of the local financial and insurance markets.

Unlike regular secondary market shares, these promoter listings represent fundamental institutional equity blocks subject to specific regulatory ownership limits.

The exact breakdown of the financial holdings available in this auction includes:

• Prime Commercial Bank Limited: A total volume of 46,894 units of promoter equity.
• United Ajod Insurance Limited: A total volume of 38,272 units of promoter equity.
• Mahalaxmi Bikas Bank Limited: A total volume of 73,853 units of promoter equity.

Minimum Baseline Valuation Unit: The floor price for all three corporate listings is fixed at the standard par value of NPR 100 per share.

The recovery desk notes that incoming bids below the NPR 100 par value threshold will be disqualified immediately during data clearing.

Investors must evaluate each target institution independently, considering current banking sector valuations, long term dividend yield records, and promoter level capital liquidity restrictions.

Reviewing the Application Parameters Deposit Limits and Allotment Rules

To ensure a standardized and smooth closing process, the management team has set out precise administrative criteria for all incoming bid packages.

These parameters help filter out speculative retail micro bids and ensure that all participating buyers have the financial backing needed to finalize large equity transfers.

The strict bidding terms and structural rules established for this auction include:

• Minimum Entry Order Volume: Bidders must apply for a minimum baseline quantity of 10,000 shares per individual application form.
• Maximum Permissible Application Cap: Qualified participants have the freedom to bid for the entire available block of shares in any of the listed companies.
• Mandatory Earnest Money Security Deposit: Each sealed bid envelope must include a certified bank voucher or bank guarantee equal to exactly 10% of the total calculated bid value.
• Non Refundable Documentation Cost: The official auction application forms must be purchased from the Patan Branch office for a fixed fee of NPR 1,000 per copy.

The compliance office emphasizes that all bidders must align their total shareholdings with the regulatory caps set by the Nepal Rastra Bank and insurance sector guidelines.

Any application that pushes an individual or corporate buyer past the maximum allowed ownership percentage for a single entity will be rejected during cross verification.

Submission Locations Processing Deadlines and Winner Priority Hierarchies

The central management has centralized all application handling and review steps at a single urban branch to ensure tight administrative control and complete security over the sealed offers.

Interested buyers must arrange to have their physical bid envelopes delivered directly to the authorized collection counter within regular business hours.

The definitive timeline dates, collection hubs, and final review locations include:

• Final Bid Submission Cutoff Date: Sealed applications will be accepted until Asar 11 2083 at exactly 5:00 PM during regular office hours.
• Official Bid Opening and Review Phase: The formal opening of the sealed envelopes will take place on Asar 15 2083 at 3:00 PM in front of the present bidders and corporate witnesses.
• Designated Submission and Review Venue: Himalayan Bank Limited, Patan Branch, Pulchowk, Lalitpur.
• Eligible Participating Demographics: Open to existing company promoters, individual private investors, registered domestic business firms, and organized financial institutions.

During the final review, the bank will prioritize the highest priced offer for allocation.

If multiple identical top pricing tiers are found, the shares will be distributed proportionally among those matching applicants.

Furthermore, if an existing promoter shareholder and a outside applicant submit the exact same pricing numbers, the allocation team will give priority to the existing promoter shareholder to preserve internal equity ownership lines.

For More: Himalayan Bank Auctions