Salapa Development Bank Opens IPO for the General Public

31st December 2025, Kathmandu

In a significant move for the Nepalese capital market, Salapa Development Bank Limited has officially launched the public subscription phase of its Initial Public Offering starting Wednesday, Poush 16. This development marks the second and most anticipated phase of the bank capital issuance, following the successful completion of share allocations for Nepalis working abroad under the foreign employment quota.

Salapa Development Bank IPO

By opening its doors to the general public, the bank is seeking to diversify its ownership structure and raise the necessary capital to fuel its regional expansion and digital banking initiatives. This IPO is expected to attract a high volume of retail investors, given the increasing interest in the secondary market and the bank solid presence in its operational areas.

BREAKDOWN OF SHARE ALLOCATION AND QUOTAS

The Securities Board of Nepal granted Salapa Development Bank the authority to issue a total of 1,723,880 ordinary shares, each with a par value of 100 rupees. The bank has followed a structured allocation process to ensure fair distribution across different categories of stakeholders. In the first phase, 172,388 shares were successfully allotted to Nepalis legally employed overseas. For the current public issuance, the bank has reserved 86,194 shares for various mutual funds and 26,119 shares for its own employees. This leaves a substantial portion of ,439,179 shares available for the general public. This multi tiered allocation strategy is a regulatory requirement designed to balance the interests of institutional investors, employees, and the wider public.

APPLICATION LIMITS AND SUBSCRIPTION TIMELINE

Prospective investors have been provided with clear guidelines regarding the application process. Individual applicants can subscribe for a minimum of 10 shares, requiring an investment of 1,000 rupees, making the IPO highly accessible to small scale investors. For larger investors, the maximum limit has been set at 25,000 shares. The subscription window is currently scheduled to remain open until Poush 20, 2082. However, the bank has clarified that if the issue does not receive full subscription within this initial four day period, the deadline may be extended until Poush 30. Given the current market trends in Nepal, where most IPOs are oversubscribed within the first few days, investors are encouraged to apply early through the ASBA supported banking channels.

THE ROLE OF MUKTINATH CAPITAL AS ISSUE MANAGER

To ensure a transparent and efficient issuance process, Salapa Development Bank has appointed Muktinath Capital Limited as the Issue and Sales Manager. Muktinath Capital is responsible for managing the collection of applications, verifying investor data, and eventually overseeing the allotment process through the electronic C-ASBA system. The involvement of a reputable merchant banker is crucial for maintaining the integrity of the IPO and ensuring that all regulatory protocols set by SEBON and the Nepal Stock Exchange are strictly followed. Investors can submit their applications through the Mero Share portal or by visiting authorized bank branches that provide ASBA services across the country.

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STRATEGIC IMPORTANCE OF THE IPO FOR Salapa DEVELOPMENT BANK

The capital raised through this IPO will play a vital role in the long term growth strategy of Salapa Development Bank. As a regional level development bank, the institution aims to use these funds to strengthen its capital adequacy ratio, which will allow it to expand its lending capacity in sectors like agriculture, small and medium enterprises, and local infrastructure projects. Furthermore, a portion of the capital is expected to be invested in upgrading the bank information technology systems to provide more robust mobile and internet banking services to its rural and semi urban customers. This transition to a public limited company also enhances the bank corporate governance and public profile, making it a more competitive player in the financial sector.

INVESTOR SENTIMENT AND MARKET DYNAMICS

The launch of the Salapa Development Bank IPO comes at a time when the Nepalese secondary market is seeing a surge in new demat account holders. For many first time investors, bank IPOs are considered a relatively safe entry point into the stock market due to the stringent regulations governing the banking sector in Nepal. Market analysts suggest that the bank focus on regional development and its healthy financial indicators make this an attractive proposition for long term investors. The successful allotment of the foreign employment quota earlier this month has already built positive momentum, and the general public subscription is expected to see a similar level of enthusiasm from both urban and rural applicants.

PROCEDURAL STEPS FOR PROSPECTIVE APPLICANTS

For those interested in applying, the process is streamlined through the digital C-ASBA system. Applicants must have a valid Demat account and a Bank Account linked with a CRN number. By logging into the Mero Share website or mobile application, investors can select the Salapa Development Bank IPO from the Current Issue section and enter the number of shares they wish to apply for. The system will then block the corresponding amount in the investor bank account until the allotment process is completed. This digital approach has revolutionized share subscription in Nepal, allowing people from the most remote corners of the country to participate in the capital market without having to visit a physical bank branch.

CONCLUSION AND NEXT STEPS FOR INVESTORS

In conclusion, the opening of the Salapa Development Bank IPO for the general public is a major event for the financial community in Nepal. With 1,439,179 shares available and an accessible minimum application of 10 shares, the bank is inviting the public to become partners in its future growth. The leadership of Muktinath Capital as the issue manager ensures a professional and reliable experience for all applicants. As the Poush 20 deadline approaches, investors should ensure their digital credentials are in order to participate in this opportunity. This IPO not only strengthens the bank financial foundation but also contributes to the broader goal of financial democratization in the country.

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