28th August 2025, Kathmandu
Shangri-la Development Bank Limited has initiated a significant process by announcing the public sale of its founder shares, offering a unique investment opportunity for both individual and institutional investors.
SADBL Founder Shares
This move is a strategic decision that not only benefits the bank by broadening its ownership base but also provides a rare chance for the general public to gain a direct stake in a well-established and growing financial institution. The public sale, a result of the shares not being purchased by existing founder shareholders, highlights the bank’s commitment to transparency and inclusive investment, fostering a more robust and liquid share market.
Understanding the Public Share Sale
The shares now available for public sale were originally owned by two of the bank’s existing founder shareholders, Balaram Shrestha (64,000 shares) and Bishwa Prakash Gurung (25,759 shares). In total, 89,759 units of shares are being offered. According to standard regulatory protocols, a bank must first offer such shares to its existing founder shareholders, providing them with a 35-day notice period to acquire the shares. As the shares were not sold within this exclusive timeframe, Shangri-la Development Bank has now opened the sale to the general public, adhering to legal and regulatory frameworks.
This process is a key part of financial market integrity. It ensures that founder shares, which typically have a lock-in period after a bank’s Initial Public Offering (IPO), can eventually be released into the open market. By making these shares available to a wider audience, the bank aims to achieve several goals:
Increase Shareholder Participation: The sale democratizes share ownership, allowing more individuals and institutions to become part of the bank’s growth story.
Improve Share Liquidity: A broader ownership base can increase the liquidity of the bank’s shares, making them easier to buy and sell on the secondary market once the sale is complete.
Enhance Corporate Governance: Diversifying the ownership structure can lead to more robust corporate governance, as the bank becomes accountable to a larger group of stakeholders.
Eligibility and the Application Process
For interested investors, the application process for purchasing these founder shares is structured and time-bound to ensure fairness. The bank has set a clear application period of 15 days from the date of the public notice. Interested parties must act swiftly to submit their applications within this limited window.
The application requires the submission of necessary documents to validate the investor’s eligibility, which typically includes proof of identity (such as a citizenship certificate or passport), proof of a bank account, and a completed application form. The applications must be submitted in person at the central office of Shangri-la Development Bank in Baluwatar, Kathmandu. This on-site submission process ensures that all applications are received and documented in a centralized, transparent manner, minimizing the risk of errors or unfair advantages. Adhering strictly to the 15-day deadline is crucial, as late submissions will not be accepted.
Compelling Reasons to Invest in Founder Shares
Investing in the founder shares of a well-established institution like Shangri-la Development Bank offers several compelling advantages that go beyond those of a regular IPO.
Direct Ownership in a Stable Bank: Investors gain direct ownership in a bank with a proven track record of growth and stability in Nepal’s competitive financial sector. Shangri-la Development Bank has consistently demonstrated sound financial performance, with recent reports showing a rise in net profit and a healthy distributable profit, making it a potentially lucrative investment.
Access to Dividends and Governance: Founder shares often come with specific rights, including priority in dividend distribution. This provides investors with a potential source of regular income from their investment. Furthermore, as shareholders, they will have the right to participate in the bank’s general meetings, vote on key resolutions, and have a voice in the bank’s governance and strategic direction.
Future Liquidity Opportunities: Once the public sale is finalized, the purchased shares will be tradable on the secondary market. This provides investors with the flexibility to sell their shares in the future, potentially at a profit, benefiting from market demand and the bank’s continued performance.
Participation in Nepal’s Growth Story: By investing in a development bank, shareholders become direct participants in the nation’s economic growth. Development banks play a crucial role in providing financial services to a wide range of customers, including small and medium-sized enterprises (SMEs) and individuals in rural areas, thereby promoting financial inclusion and community development.
Guidance for Prospective Investors
For those considering this investment, it is vital to follow the proper procedures and conduct due diligence. Interested investors should:
Prepare in Advance: Ensure all necessary documents, including a valid identification and any required proof of eligibility, are prepared and ready before the application period begins.
Understand the Timelines: Note the 15-day application window and the submission location. Time is of the essence, and missing the deadline means missing the opportunity.
Conduct Research: While Shangri-la Development Bank has a positive track record, it is always wise for an investor to research the bank’s most recent financial reports, including its earnings per share (EPS), non-performing loan (NPL) ratio, and dividend history, to make an informed decision.
Seek Advice: For larger investments, consulting a financial advisor is highly recommended to assess the risks and potential returns in the context of one’s personal investment portfolio.
In conclusion, the public sale of founder shares by Shangri-la Development Bank Limited is an extraordinary opportunity for investors to acquire a significant stake in a trusted and growing financial institution. The transparent and well-structured process ensures fair access for all applicants, while the potential for dividends, governance influence, and future liquidity makes these shares an attractive long-term investment. By participating, investors can not only secure a valuable asset but also become an integral part of Shangri-la’s mission to promote inclusive financial participation and contribute to Nepal’s banking growth story.
For More: SADBL Founder Shares