Sarathi Cable Industries Signs Agreement Citizens Capital for IPO Issuance
24th July 2025, Kathmandu
In a significant move aimed at bolstering Nepal’s industrial landscape and electrical infrastructure, Sarathi Cable Industries Limited, a prominent cable and wire manufacturer in the country, has officially partnered with Citizens Capital Limited for the issuance of its Initial Public Offering (IPO).
Sarathi Cable Industries Signs Citizens Capital
This strategic collaboration marks a pivotal moment for both entities, promising to usher in a new era of growth and public participation in Nepal’s burgeoning energy sector.
The formal agreement was cemented during a signing ceremony held at Hotel Steriat in Kathmandu, a testament to the importance and forward-looking vision of this partnership. The signatories were Mr. Ankit Bhusal, Chairman of Sarathi Cable Industries, and Mr. Sabir Bade Shrestha, CEO of Citizens Capital, whose signatures symbolized the shared commitment to advancing Nepal’s domestic manufacturing capabilities and offering accessible investment avenues to the general public.
A Vision for Modernization and Growth
Sarathi Cable Industries has outlined an ambitious plan for its IPO. The company intends to issue 20 percent of its issued capital to the general public during the fiscal year 2082/83. The capital garnered from this public offering is earmarked for crucial developmental projects that will significantly enhance Sarathi Cable’s operational capacity and product portfolio. Specifically, the funds will be channeled into two key initiatives: the commencement of underground cable production and the establishment of a state-of-the-art Aluminium Furnace Plant. These investments are not merely about expanding production; they represent a leap forward in adopting advanced manufacturing techniques and diversifying product offerings to meet evolving national demands.
Chairman Ankit Bhusal articulated the profound significance of this agreement, stating, “This agreement marks a major milestone in our mission to modernize Nepal’s electrical infrastructure. We are committed to developing a strong, domestically produced system that meets national demands.” His statement underscores Sarathi Cable’s dedication not just to business growth but to a broader national agenda of self-reliance and infrastructural robustness. By focusing on domestic production and modernization, Sarathi Cable aims to play a crucial role in building a resilient and efficient electrical network across Nepal.
Echoing this sentiment, Citizens Capital CEO Sabir Bade Shrestha expressed his organization’s pride in the collaboration. “We are proud to collaborate with Sarathi Cable. This IPO will present an accessible investment opportunity for the public and contribute significantly to enhancing the nation’s cable production capacity,” remarked Shrestha. His words highlight the dual benefit of this IPO: providing a tangible investment opportunity for Nepalese citizens while simultaneously contributing to the enhancement of critical national infrastructure. This partnership exemplifies how capital markets can effectively support industrial development and create shared prosperity.
The Crucial Role of Sarathi Cable in Nepal’s Energy Future
Nepal’s immense hydropower potential, estimated at approximately 83,000 megawatts, positions the nation on the cusp of a significant energy transformation. As the country harnesses more of this green energy, the demand for robust and reliable transmission and distribution infrastructure will inevitably surge. In this context, Sarathi Cable’s role is expected to grow even more crucial. The company specializes in the production of essential electrical components including Multi-Strand Cable, Power Cable, Concentric Cable, and ACSR Conductor. These products are fundamental to transmitting electricity from power generation sites to homes and industries, making Sarathi Cable an indispensable player in Nepal’s energy ecosystem.
With over 18 years of invaluable industry experience, Sarathi Cable Industries has consistently demonstrated its commitment to quality and innovation. The company’s long-standing presence in the market has allowed it to cultivate deep expertise and a thorough understanding of Nepal’s unique infrastructural needs. In the coming years, Sarathi Cable aims to strengthen Nepal’s transmission and distribution infrastructure further, laying the groundwork for a more electrified and prosperous future. This commitment goes beyond merely supplying products; it involves a dedication to continuous improvement and adapting to the evolving technological landscape of the energy sector.
Deep Dive into Sarathi Cable Industries
Sarathi Cable Industries, often identified by its brand “Saarathi,” represents a fusion of innovation and robust engineering in the wires and cables sector. Their product offerings are renowned for their agility and for being meticulously engineered to endure even the harshest environments. Established in 2005 in Rupandehi, Nepal, Saarathi Cable and Wire Industries Pvt. Ltd. has rapidly ascended to become a key manufacturer of both copper- and aluminum-based cables.
Strategically located with its main production base in Butwal and a corporate office in Kathmandu, the company boasts a comprehensive product portfolio. This includes a wide array of offerings such as multistrand wires, various types of power cables (both armoured and unarmoured to suit different protection requirements), ACSR conductors crucial for overhead power lines, housewires for domestic electrical installations, electrical boards, and even PVC compounds, which are essential raw materials for cable insulation.
Primarily owned by the Saarathi family, the company prides itself on its unwavering commitment to quality. Sarathi Cable is certified with both NS (Nepal Standard) and ISO quality systems, underscoring its adherence to international and national benchmarks. This commitment is not superficial; Saarathi emphasizes strict quality controls that span the entire production process, from the meticulous sourcing of raw materials to the final packaging of products. This holistic approach ensures that every cable and wire leaving their facility meets the highest standards of safety, durability, and performance.
The mission of Sarathi Cable is multi-faceted, blending innovation with customer-centric service, environmental sustainability, and social responsibility. This reflects the broader values of the larger Saarathi Group, indicating a corporate philosophy that extends beyond mere profit generation. In under two decades, Saarathi Cable has not only established itself as a trusted national supplier but has also made significant contributions to Nepal’s critical infrastructure and overall economy. Their growth story is a testament to their operational excellence and their strategic vision in a rapidly developing nation.
Understanding Citizens Capital: A Pillar in Nepal’s Financial Landscape
Citizens Capital Limited, a pivotal player in Nepal’s capital market, has a rich history of evolution. It was originally incorporated in 2007 under the name National Investment & Capital Market Limited. A transformative phase occurred in 2015 when Citizens Bank International Limited acquired National Investment, leading to the formation of the current Citizens Capital Limited. This acquisition significantly strengthened its position and capabilities within the financial sector.
Today, Citizens Capital stands as one of the leading merchant banks in Nepal, distinguished by its robust capabilities in various facets of investment banking. The company manages mutual funds totaling an impressive Rupees 1.38 billion, demonstrating its expertise in collective investment schemes. Beyond fund management, Citizens Capital provides a comprehensive suite of merchant banking services. These include Depository Participant (DP) services, which are crucial for holding securities in dematerialized form; Issue Management services, guiding companies through the intricate process of public offerings like IPOs; Underwriting, which ensures the successful subscription of securities; and RTA/RTS (Registrar to Shares/Securities) services, managing shareholder records. Furthermore, Citizens Capital offers Portfolio Management Services (PMS), leveraging its team of experts to manage investment portfolios tailored to individual client needs.
Mission, Vision, and Operational Philosophy
Citizens Capital operates with a clear mission: “We will work for the satisfaction of customers proactively with our competent team of experts and strive to provide excellent services as well as sound return to the investors.” This mission statement underscores their commitment to client success and wealth generation. Their overarching vision is equally ambitious: “To become the market leader in capital industry,” signaling their aspiration for preeminence in Nepal’s financial services sector.
The operational philosophy at Citizens Capital is built on a collaborative team-based approach, ensuring that customer needs are met with precision and efficiency. Their working methodology can be broken down into distinct stages:
Understanding Customer Needs: At the outset, Citizens Capital prioritizes thoroughly understanding the specific needs, expectations, and quest for excellence of its customers. This initial step is critical for tailoring bespoke financial solutions.
Human Resource Development: Recognizing that their people are their greatest asset, the company focuses on recruiting, training, and grooming human resources. This ensures that their team members are fully capable of understanding complex customer requirements and undertaking assignments with impeccable execution.
Collaborative Delivery: With a clear understanding of client needs and a highly skilled team, Citizens Capital then combines all its efforts to deliver sound results that directly benefit its customers. This synergistic approach is fundamental to their service delivery.
Continuous Improvement: Finally, the company maintains a meticulous database of all activities and results. This data is then utilized for further refinement and continuous self-improvement, allowing Citizens Capital to analyze performance, identify areas for enhancement, and upgrade its services accordingly. This iterative process ensures ongoing excellence and adaptability.
Capital Structure and Parentage
The capital structure of Citizens Capital highlights its strong institutional backing. Promoter Shareholders include:
Citizens Bank International Limited: Holding a dominant 58.60% stake, reaffirming its role as the parent company.
Employee Provident Fund: With a significant 17.14% shareholding, reflecting institutional investment.
Individuals: Comprising 24.26%, indicating a degree of diversified individual ownership.
Citizens Bank International Limited, with its substantial shareholding, serves as the parent company of Citizens Capital. As a commercial bank regulated by the Nepal Rastra Bank (NRB), the central bank of Nepal, Citizens Bank provides a strong foundation of stability and financial expertise. Its corporate office is strategically located at Narayanhiti Path, Kathmandu, placing it at the heart of Nepal’s financial hub. This robust parentage further enhances the credibility and operational capabilities of Citizens Capital, making it a reliable partner for companies like Sarathi Cable Industries in their journey towards public listing.
This partnership between Sarathi Cable Industries and Citizens Capital is more than just a business transaction; it represents a shared vision for Nepal’s economic future, fostering industrial growth, public participation in the capital market, and the crucial modernization of the nation’s electrical backbone. As Nepal continues to harness its vast energy potential, collaborations like this will be instrumental in building a self-reliant and prosperous nation.
For more: Sarathi Cable Industries Signs Citizens Capital
