29th October 2025, Kathmandu
Nepal Finance Limited (NFS) has initiated the strategic sale of 2,26,403 founder shares, a move that presents a unique and exclusive opportunity for the company’s existing founding shareholders to significantly bolster their equity stake.
Nepal Finance Shares for Sale
This announcement on 12th Kartik 2082 (October 29, 2025), is a key event in the company’s shareholding dynamics, underscoring its commitment to prudent ownership transition and foundational investor engagement. The sale, originating from the personal holdings of founding shareholder Vijay Bahadur Manandhar, is structured to prioritize those who laid the groundwork for Nepal Finance’s success.
The Strategic Importance of Founder Shares in Nepalese Finance
Founder shares, also commonly referred to as promoter shares in the Nepalese context, are a class of equity distinct from ordinary shares. They are typically held by the initial investors and directors who established the company. These shares often carry special rights and privileges, such as enhanced voting power, which allows the original founders to maintain strategic influence and control over the company’s direction, even as the overall capital base grows.
The current restricted sale ensures that control and strategic alignment remain within the founding group. In the highly regulated environment of Nepal’s banking and financial institutions (BFIs), a stable founding shareholder base is often viewed positively, signaling continuity in leadership and long-term vision. This process allows the existing promoters to consolidate their ownership, a common practice aimed at strengthening governance and strategic positioning within the financial sector. The decision to sell existing shares (a secondary sale) means the proceeds go to the selling shareholder, not the company, but the resultant ownership restructuring is a vital internal process for stability.
Exclusive Application Window and Structured Sale Process
Nepal Finance Limited has established a clear, structured, and transparent process for this share sale, adhering to the highest standards of corporate governance:
Initial Restriction: The sale is exclusively restricted to the existing founding shareholders of Nepal Finance Limited for the first phase. This ‘right of first refusal’ mechanism is typical for promoter shares and ensures that the original equity structure is preserved and reinforced.
Application Timeline: Interested founding shareholders are granted a 35-day application window from the date of the announcement to submit their purchase requests. This ample period is essential for eligible parties to complete due diligence and arrange the necessary capital.
Submission Details: Applications must be submitted directly to the company’s central office in Kamaladi, Kathmandu. This centralization ensures a smooth, verifiable, and regulated submission process.
Plan B: Diversification and Public Opportunity
The company has a clear contingency plan should the founding shareholders not fully utilize this exclusive 35-day window.
Opening to the Wider Market: In the event that all 2,26,403 shares are not purchased by the eligible founders, the remaining shares will then be made available for sale to other interested individuals and institutional investors.
Benefits of Diversification: Opening the sale to the public, if necessary, serves to liquidate the shares and potentially diversify the shareholder base. This can inject new capital and strategic insights into the company, which is beneficial for sustained growth. Nepal’s financial market regularly sees such promoter share sales, often via auction, to the general public when internal demand is not met, a practice that boosts market activity and allows ordinary investors to acquire high-value promoter stock.
Investment Attractiveness and Sector Outlook
For potential investors, the availability of founder shares in Nepal Finance Limited represents an attractive investment proposition:
Financial Sector Stability: Nepal Finance Limited is a well-established entity in Nepal’s BFIs sector, known for its robust financial performance and effective management. The finance company segment plays a critical role in the Nepalese economy, offering a wide array of financial services and benefiting from the nation’s increasing financialization.
Confidence Signal: While a promoter selling shares may sometimes raise questions, the structured, transparent nature of this internal sale, with a clear priority given to existing founders, signals the company’s intent to maintain control while facilitating a smooth exit for a shareholder.
Enhanced Future Growth Potential: Acquiring founder shares is an opportunity to directly participate in the company’s long-term growth and potential profitability, often with the added benefit of greater influence over corporate matters.
In conclusion, the sale of these 2.26 lakh founder shares is a crucial period for Nepal Finance, defining a slight, managed adjustment in its foundational ownership structure. Founding shareholders must move swiftly to secure their stake by the 35-day deadline at the Kamaladi office, or risk the opportunity being extended to the wider investment community.
For More: Nepal Finance Shares for Sale