Kathmandu, Mangsir 25. Salapa Bikas Bank Limited (SBBL) has opened the subscription for its Initial Public Offering (IPO) to Non-Resident Nepalis (NRNs) and foreign Nepalese immigrants from today, 25th Mangsir, 2082.

The offering for this category will remain open until 29th Mangsir, 2082, with a provision to extend the deadline to 10th Poush, 2082, in case of undersubscription.

Issue Structure:
The bank is issuing 33% of its issued capital of Rs. 52.23 Crores to the public, totaling 17,23,880 unit shares. Of this public issue:

• 1,72,388 units (10%) are allocated for Nepalese citizens working abroad (the current offering).
• 26,119 units (0.50%) are reserved for the company’s employees.
• 86,194 units (5%) are set aside for mutual funds.
• The remaining 14,39,179 units will be offered to the general public at a later date.

Application and Management:
For the NRN category, investors can apply for a minimum of 10 units and a maximum of 25,000 units. Muktinath Capital Limited has been appointed as the issue manager for the IPO.

Credit Rating:
Ahead of the public offering, Infomerics Credit Rating Nepal Limited has assigned the bank an issuer rating of ‘IRN B (Is)’, indicating a high risk of default regarding the timely repayment of financial obligations. This rating is a key risk indicator for potential investors.

Company Background:
Salapa Bikas Bank is a regional “B” Class development bank licensed by Nepal Rastra Bank, operating primarily in the Khotang district. Incorporated in 2012, it currently runs 6 branches and a head office. The bank's paid-up capital stands at NPR 350 million, which is entirely held by its promoters. Major shareholders include Mr. Dhan Prasad Rai (0.61%) and Mr. Manindra Rai (0.50%).

This IPO marks the bank's transition from a privately held institution to a publicly traded entity, seeking to raise capital from the public, starting with the Nepali diaspora.