29th October 2025, Kathmandu
Hulas FinServ Hire Purchase Limited, a key non-banking financial institution under the venerable Golchha Group, is setting the stage for a highly anticipated Initial Public Offering (IPO) in the Nepalese capital market.
Hulas FinServ Prepares for IPO
This public offering follows a period of exceptional financial and operational performance, underscored by a massive yearly turnover of nearly Rs. 95 crore (Rs. 95.10 crore) in the fiscal year 2025. This move is a strong signal of the company’s maturity, market leadership, and readiness for a significant capital expansion.
Exponential Growth and Portfolio Dominance
The core of Hulas FinServ’s IPO readiness lies in its robust and accelerating financial metrics, which demonstrate both efficiency and market penetration.
Income Surge: The company recorded an impressive 78.75 percent increase in income for FY 2025 compared to the previous year, highlighting a successful execution of its business strategy. This surge to Rs. 95.10 crore turnover reflects strong revenue generation and improved profitability, a critical factor for attracting IPO investors who seek evidence of sustainable earning power.
Managed Portfolio Boom: The total managed portfolio has seen explosive growth, surging from Rs. 3.46 billion in 2024 to an enormous Rs. 8.18 billion by 2025. This monumental expansion, along with an increase in the average yield on managed assets to 3.65 percent, proves the company’s ability to efficiently deploy capital, capture a larger market share, and generate higher returns from its lending operations. Such a scale and yield are powerful indicators of an institution poised for national prominence.
Strategic Lending Diversification: Hulas FinServ has skillfully broadened its portfolio beyond traditional hire purchase. The growth of mobile phone financing to 26 percent of the total portfolio by mid-2025 showcases the company’s agility in tapping into high-growth, consumer-facing segments. This diversified lending mix, balanced with stable financing in two-wheeler (38 percent) and private vehicle (28 percent) segments, mitigates risk and ensures a balanced and resilient business model.
Credit Quality and Capital Structure Excellence
Investor confidence in a financial institution is fundamentally tied to the quality of its assets and the robustness of its capital structure. Hulas FinServ demonstrates excellence on both fronts.
Superior Asset Quality: The company has made remarkable progress in asset quality, successfully driving down its gross Non-Performing Assets (NPA) to 3.08 percent (from 5.98 percent in 2023). Even more telling is the low net NPA of 0.48 percent. These figures signify highly effective credit underwriting standards, prudent credit policies, and strong loan recovery mechanisms. A low net NPA is a primary attraction for potential shareholders, as it points to fewer losses and greater stability.
Strategic Gearing: The gearing ratio’s increase from 1.17 times in 2023 to 4.13 times in 2025 demonstrates a calculated and strategic utilization of debt to fuel its massive portfolio growth. Crucially, the company maintains a long-term debt ceiling of Rs. 8.03 billion, along with a short-term limit of Rs. 520 million, providing ample financial headroom for future expansion while remaining within regulatory limits.
Credit Rating Upgrade: The recent upgrade of its long-term credit rating to LBBB-minus and short-term rating to A3 by ICRA Nepal is a third-party validation of the company’s improving financial health and enhanced operational efficiency. A strong credit rating significantly enhances the company’s reputation and its ability to raise future capital at competitive rates.
The Golchha Group Advantage and Future Outlook
The foundation of Hulas FinServ’s credibility rests firmly on its association with the Golchha Group, a conglomerate with over eight decades of industrial and commercial experience in Nepal.
Promoter Backing: With Hansraj Hulaschand & Company Pvt. Ltd. holding approximately 82 percent of the shares, the IPO is backed by one of the most reputable and financially sound organizations in the country. This strong promoter backing reinforces market trust and acts as a significant risk mitigant for new investors.
IPO for Continued Leadership: The upcoming IPO is designed to raise capital from the public, which will be strategically deployed to support the company’s continuing high-growth trajectory and maintain its market leadership in the hire purchase segment. It will enable the institution to further expand its financial services footprint, serving a wider array of consumers and businesses across Nepal. This step not only benefits the company but also signifies the growing strength and diversification of the non-banking financial sector in the Nepalese economy.
Hulas FinServ Hire Purchase Limited’s stellar financial performance, fortified by superior asset quality, disciplined management, and the unwavering support of the Golchha Group, presents a compelling investment case. The IPO represents a landmark opportunity for the general public to partake in the growth story of one of Nepal’s most promising and well-managed financial institutions.
For More: Hulas FinServ Prepares for IPO