Lumbini Development Bank Share Sale Opens for General Public
12th January 2026, Kathmandu
Lumbini Development Bank Limited has officially opened the sale of its promoter shares to the general public after receiving no purchase applications from its existing promoter shareholders. The bank has placed a total of 120,090 shares up for sale. This transition from a restricted internal offer to a public offering provides an opportunity for external individuals and institutional investors to acquire a stake in one of Nepal’s established development banks.
Lumbini Development Bank Share
The decision was announced on Monday, January 12, 2026, following the completion of a 35-day mandatory notice period originally issued for the bank’s existing founders. Since no existing shareholders expressed interest in the units during that window, the bank is now proceeding with the sale to the wider investment community as per the Bank and Financial Institutions Act (BAFIA) 2073 and Nepal Rastra Bank directives.
Details of Shares on Sale
The total pool of 120,090 shares is comprised of holdings from two specific promoter shareholders who are looking to divest their interests.
The breakdown of the units available is as follows:
Kancha Gurung: 100,000 units of promoter shares.
Prakash Man Shrestha: 20,090 units of promoter shares.
Initially, the bank had invited applications exclusively from the existing promoter group starting from Mangsir 21, 2082. The shift to a public sale underscores a lack of internal appetite for additional shares at this time, opening the door for new participants to enter the bank’s promoter registry.
Application Process and Deadline
Interested individuals, companies, and organizations from the general public must follow a specific application protocol to participate in this share sale. Unlike ordinary shares traded on the secondary market, these are promoter shares, which often require a formal bid and specific documentation.
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Application Timeline: Interested buyers must submit their applications within 15 days from the date of the public notice.
Submission Venue: All applications along with the necessary supporting documents must be physically submitted to the bank’s head office, located at Sunrise Biz Park, Dillibazar, Kathmandu.
Requirement: Applicants should clearly mention the number of shares they intend to purchase and the price they are offering per share.
Prospective investors should be aware that promoter shares in Nepal usually carry a different set of rights and restrictions compared to ordinary public shares, including a longer lock-in period and specific regulatory requirements for future sales.
Financial Context of Lumbini Development Bank
Lumbini Development Bank (LBBL) is a “Class B” financial institution licensed by Nepal Rastra Bank. As of January 2026, the bank’s ordinary shares have been trading in the range of NPR 470 to NPR 480 on the Nepal Stock Exchange (NEPSE).
For the fiscal year 2080/81, the bank distributed a total dividend of 7 percent, consisting of a 3 percent bonus share and a 4 percent cash dividend. However, recent quarterly reports for the first quarter of the fiscal year 2082/83 indicate some financial pressure, with the bank reporting a net loss during that specific period. Investors are encouraged to review the most recent unaudited financial results and the bank’s non-performing loan (NPL) ratios before committing to a long-term promoter position.
Conclusion
Lumbini Development Bank Share Sale open to the general public represents a significant opportunity for serious investors to acquire a large volume of shares in a single transaction. With the sale of 120,090 shares now accessible to anyone, the bank is looking to diversify its promoter base and ensure the efficient transfer of ownership from the divesting shareholders.
As the 15-day deadline approaches, interested parties are advised to conduct their due diligence regarding the bank’s current valuation and future growth prospects. The successful placement of these shares will be a key indicator of market confidence in the development banking sector during early 2026.
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