Over 100,000 Kumari Bank Promoter Shares Put Up for Sale
26th November 2025, Kathmandu
Kumari Bank Limited has initiated the sale of a significant block of promoter shares, totaling over 102,000 units.
KBL Promoter Shares Sale
This process, which is common in the Nepalese banking sector, provides an opportunity for existing key investors to increase their stake in the commercial bank.
Promoter Share Sale Details
The sale is being conducted in two distinct phases, with the initial phase strictly prioritizing existing promoter shareholders, as mandated by the directives of Nepal Rastra Bank (NRB).
Total Shares on Offer: More than 102,000 units of promoter shares.
Share Origin: The shares belong to the promoter group of the bank. Promoter shareholders are the founding or major investors who hold the majority of the bank’s equity, typically subject to a lock-in period.
First Right of Purchase: During the initial phase, only existing promoter shareholders of Kumari Bank are eligible to apply for the purchase. This “first right” clause ensures that the core control and ownership structure remains within the promoter group unless they choose not to purchase the shares.
Application Process and Timeline
Kumari Bank has established a clear and dedicated window for the initial application phase.
Application Window: The application period is set to remain open for 35 days from the date of the sale announcement. This is the standard time frame provided for promoter shareholders to exercise their first right of purchase.
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Application Submission Locations: Interested existing promoter shareholders can submit their applications at two specific locations:
The bank’s head office in Tangal, Kathmandu.
The office of the bank’s share registrar and subsidiary, Kumari Capital’s office in Naxal, Kathmandu.
Contingency Plan: Sale to the General Public
A crucial part of the bank’s notice addresses the procedure that will follow if the initial offering to existing promoters is not fully subscribed.
If Unsubscribed: If the bank receives no applications or the total applications do not cover all 102,000+ shares from existing promoter shareholders within the 35-day application window, the bank will initiate the next phase.
Sale to Other Investors: In the second phase, the remaining unsubscribed promoter shares will be opened for sale to other individuals and institutions. This group typically includes the general public, qualified institutional investors, or non-promoter entities. This mechanism, required by the central bank’s regulations, helps ensure the divestment is successful, although shares sold to the general public often still retain the status of promoter shares in the buyer’s name.
Contextual Significance for Kumari Bank
The sale of promoter shares is an ongoing feature in the Nepalese commercial banking sector, often arising due to individual promoter decisions to liquidate part of their holding, the fulfillment of merger-related share swaps, or regulatory pressure to maintain a certain Promoter-to-Public share ratio.
Kumari Bank has a substantial presence in the Nepalese financial market, with a large paid-up capital of approximately NPR 26.23 billion (as of the most recent data). The continuous process of auctioning promoter shares contributes to maintaining liquidity for the promoters and, if the shares eventually move to the public, can help rebalance the equity mix. The final price for these shares is typically determined through a competitive bidding process among the applicants, though a minimum price may be set by the seller.
For More: KBL Promoter Shares Sale
