SEBON Grants Approval for Salapa Bikas Bank IPO: Offering 1.7 Million Units
Salapa Bikas Bank IPO
24th November 2025, Kathmandu
The Securities Board of Nepal (SEBON) has formally granted the Initial Public Offering (IPO) proposal of Salapa Bikas Bank IPO.
Salapa Bikas Bank IPO
This significant approval, issued on 25th Kartik, 2082, paves the way for the development bank to issue its shares to the general public.
This move allows retail investors to become part-owners of the institution. It also enables Salapa Bikas Bank Limited (SBBL) to meet regulatory requirements for paid-up capital and public shareholding.
The successful launch of this IPO marks a crucial step for the development bank. It expands its capital base and enhances its public profile. Investors now prepare for a new opportunity in the primary market, evaluating the bank’s future prospects.
Details of the Public Offering
According to the proposal approved by SEBON, Salapa Bikas Bank plans to issue a substantial number of shares to the general public.
The total number of shares offered stands at 1,723,880 units. Each unit will carry a face value of Rs. 100. This standard pricing strategy ensures accessibility for a broad range of investors, including small-scale applicants using the ASBA system.
The sheer volume of units offered indicates a significant effort by the bank to raise capital. This fresh injection of funds is crucial for the bank’s expansion plans. I
t supports increased lending capacity and strengthens its core operations across its branch network. Investors must note the par value pricing structure. This ensures the pricing is straightforward and highly attractive to initial applicants.
Appointing the Issue Manager
To manage the complexities of a public issue, Salapa Bikas Bank has appointed a reputable entity as its issue manager. Muktinath Capital Limited takes on the responsibility for the public offering. The issue manager’s role is critical. They handle all regulatory compliance, documentation, and the entire public issuance process.
Muktinath Capital Limited’s expertise will ensure the IPO process runs smoothly and adheres to all SEBON guidelines. The appointment of an experienced capital market player guarantees operational efficiency.
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It facilitates a streamlined application and allotment procedure for prospective investors in the Salapa Bikas Bank IPO. They are tasked with ensuring transparency and fairness throughout the subscription period.
Understanding the Credit Rating and Risk
Prospective investors must carefully evaluate all available information before applying for the shares. Infomerics Credit Rating Nepal Limited assigned a credit rating of IRN B (Is) [Single B (Issuer)] to SBBL. This rating is an essential indicator of the bank’s financial health.
The ‘Single B’ rating indicates a high risk of default in the timely servicing of financial obligations. While this does not preclude investment, it strongly suggests that the company currently holds a lower credit quality.
Investors should approach this IPO with a full understanding of the risk profile. This rating requires potential applicants to conduct thorough due diligence on the bank’s financial statements, management, and operational performance. The Salapa Bikas Bank IPO offers high risk alongside potential returns, making careful analysis essential.
Role of Development Banks in Nepal’s Economy
Development banks like SBBL play a pivotal role in Nepal’s financial landscape. They focus on mobilizing savings and providing credit, often prioritizing micro, small, and medium enterprises (MSMEs) and localized economic development. Their presence is vital, particularly in semi-urban and rural areas where commercial bank access may be limited.
The decision to go public underscores the bank’s commitment to transparency and robust corporate governance. An IPO mandates greater public disclosure and regulatory scrutiny.
This benefits depositors and shareholders alike, fostering increased trust in the institution. The successful listing of the Salapa Bikas Bank IPO will enable it to compete more effectively and drive localized growth initiatives.
What Investors Must Do Next
With the IPO approval secured, investors should monitor the official announcements carefully. Muktinath Capital will soon publish the official prospectus, including the opening and closing dates for the public subscription. Investors should ensure they have a valid Demat account and a C-ASBA approved bank account ready.
They must apply for the minimum lot size, which typically remains at 10 units for an IPO at par value. Given the risk rating, investors should exercise caution, applying only after a thorough review of the company’s financial fundamentals and future growth strategy.
For more: Salapa Bikas Bank IPO
