Prabhu Bank Founder Share Sale Announcement 2082
25th January 2026, Kathmandu
Prabhu Bank Limited has officially announced the sale of a significant volume of promoter shares as part of a strategic share ownership adjustment process. According to the formal notice issued by the bank in late Poush 2082, exactly 727,543 units of founder shares have been placed on the market by 13 individual promoter shareholders. This development is expected to draw substantial interest from existing institutional and individual founders looking to consolidate their influence within one of Nepal’s leading commercial banks.
Prabhu Bank Founder Share
The bank clarified that the decision to sell follows formal applications submitted by the 13 shareholders expressing their intent to liquidate a portion of their holdings. In line with the Bank and Financial Institutions Act (BAFIA) 2073 and prevailing securities regulations, the bank has initiated a structured sale process designed to maintain ownership stability.
Priority Rights for Existing Founder Shareholders
Under the current regulatory framework established by Nepal Rastra Bank, the first right of refusal for any promoter share sale must be offered to the existing pool of founder shareholders. This legal provision is intended to preserve the core ownership structure and prevent sudden, unsolicited shifts in control that could destabilize the bank’s governance.
Currently, only those individuals or institutions already registered as promoter shareholders of Prabhu Bank are eligible to apply for these 727,543 units. This 35-day window, starting from the date of the notice in Poush 2082 (January 2026), allows existing stakeholders to acquire additional equity at a negotiated price before the offer potentially extends to the general public.
Application Procedure and Deadlines
Interested founder shareholders must act within the specified 35-day timeframe to secure their priority status. The application process requires the submission of several key documents:
Formal Purchase Application: A signed document stating the number of units the shareholder intends to buy.
Proof of Founder Status: Documentation verifying their current standing as a promoter of Prabhu Bank.
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Financial Disclosures: As per the latest BAFIA requirements, large-scale acquisitions may require the disclosure of the source of funds to ensure compliance with anti-money laundering regulations.
All applications must be submitted directly to Prabhu Bank’s central office located in Babarmahal, Kathmandu. The bank has emphasized that any submissions received after the deadline or those with incomplete documentation will be automatically disqualified from the priority round.
Secondary Sale to the General Public
If the existing founders do not fully subscribe to the 727,543 units within the 35-day window, Prabhu Bank is authorized to move to the second stage of the sale. In this scenario, the bank will issue a new 15-day notice opening the purchase opportunity to other individuals and corporate entities outside the current promoter group.
Opening promoter shares to the general public is a common practice in the Nepalese banking sector when internal liquidity among founders is low. However, even if sold to the public, these shares maintain their “Founder” status (often categorized under a separate ISIN) and carry different trading restrictions compared to ordinary public shares listed on the Nepal Stock Exchange (NEPSE).
Strategic Context and Market Implications
Market analysts view this sale not as a sign of financial distress, but as a standard portfolio rebalancing. In many instances, promoters sell shares for personal liquidity, estate planning, or to diversify their investment portfolios into other sectors like hydropower or insurance.
From a governance perspective, keeping these shares within the existing founder group helps maintain the strategic continuity of the bank. Prabhu Bank has recently shown stable performance, reporting a net profit of 558.48 million rupees in the first quarter of the 2082/83 fiscal year. For a long-term investor, acquiring founder shares—which often trade at a discount compared to public shares despite carrying the same dividend rights—represents a strategic value play.
Conclusion
The sale of 727,543 units of Prabhu Bank founder shares represents a significant window of opportunity for existing promoters to enhance their stake in the institution. As the 35-day priority period progresses through Magh 2082, the bank’s shareholding pattern may see minor shifts that could influence long-term voting blocks. For the broader market, the outcome of this sale will serve as a bellwether for institutional investor confidence in the commercial banking sector as a whole.
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