Nepal Finance Opens Auction of Founder Shares at NPR 100 Per Share

28th August 2025, Kathmandu

Nepal Finance Limited is holding a public auction for its unallocated 794,971.187 founder shares.

Nepal Finance Founder Shares Auction

The auction is open to all interested applicants, including founders and general investors, with a minimum bid price of NPR 100 per share. This provides a wide range of investors an opportunity to acquire equity in the company.

Auction Process and Rules

The auction is a competitive bidding process where shares will be allocated to the highest bidders. Interested participants must apply for a minimum of 1,000 shares, and the maximum application quantity can be the entire available shares, provided the total is divisible by 10. The auction period runs from Bhadra 12, 2082, to Bhadra 26, 2082. This extended timeline allows investors sufficient time to evaluate their bids and submit their applications.

Application forms and bidding documents are widely accessible across Nepal through a network of authorized centers. These include:

• Prabhu Capital Limited’s central office in Kamaladi, Kathmandu.
• Nepal Finance Limited’s central office and its branches in Banepa, Machhapuchhre, Lagankhel, and Tilottama.
• Prabhu Bank Limited’s branch offices in major cities like Biratnagar, Birgunj, Pokhara, Nepalgunj, Surkhet, and Dhangadhi.

This extensive network ensures that investors from various provinces can easily participate in the auction without having to travel to the capital city.

Significance of the Auction

This auction is a significant event for both Nepal Finance Limited and the wider capital market. For the company, it’s a strategic move to diversify its ownership and enhance market participation. By making these founder shares available to the public, the company aims to attract long-term investors and improve its corporate governance. The auction also provides a way for the company to raise capital and stabilize its financial position.

For investors, the auction offers a compelling investment opportunity. They can acquire shares at a competitive base price of NPR 100, which is often lower than the secondary market price for such shares. This allows them to enter the financial services sector, one of the most active in Nepal’s capital market, at an attractive valuation. Investing in a finance company through such an auction offers the potential for future returns through both dividends and capital appreciation as the company grows. The availability of these shares in the market will also increase liquidity, which is beneficial for both current and future investors.

The auction of unallocated shares is a common practice in the Nepali capital market, often following a right-share issue where a certain percentage of shares remains unsubscribed. These shares are then put up for auction to be sold at a market-determined price. The transparency and competitive nature of the bidding process ensure a fair valuation of the shares being sold.

In conclusion, the auction of Nepal Finance Limited’s founder shares is a crucial event for the company’s financial future and a valuable opportunity for investors. The auction process is designed to be fair and accessible, with applications being accepted at various locations across the country. Interested bidders are encouraged to submit their applications within the two-week window to secure a stake in one of Nepal’s established financial institutions.

For More: Nepal Finance Founder Shares Auction