Hulas Finserv Seeks SEBON Approval to Issue Premium IPO Worth Rs 74.46 Crore

Hulas Finserv Hire Purchase Limited (HFHPL) has applied to the Securities Board of Nepal (SEBON) seeking approval to issue an Initial Public Offering (IPO) at a premium price. The company has proposed to issue 20,75,000 units of shares at Rs 358.85 per unit, including a premium of Rs 258.85 on a face value of Rs 100. Through this offering, HFHPL aims to raise Rs 74.46 crore. NMB Capital has been appointed as the issue manager for the proposed IPO. Currently, the company’s paid-up capital stands at Rs 80 crore.

Established in 2012 and converted into a public company in 2021, Hulas Finserv Hire Purchase Limited is the first Limited Non-Banking Financial Company (NBFI) licensed by Nepal Rastra Bank. A member of the Golchha Group, the company specializes in Insta Finance solutions and claims to have financed over 100,000 vehicles so far. Shekhar Golchha serves as the Managing Director of the company.

ICRA Nepal has upgraded the company’s long-term loan rating from [ICRANP] LBB+ to [ICRANP] LBBB-, while its short-term loan rating has been upgraded from [ICRANP] A4+ to [ICRANP] A3. These ratings indicate a moderate degree of safety regarding the timely servicing of financial obligations.

HFHPL is primarily promoted by Hansraj Hulaschand and Company Private Limited, which holds an 82 percent stake. The remaining 18 percent is held by 45 other shareholders, including Hulas Auto Craft Private Limited with 5 percent stake and Him Electronics Private Limited with 2 percent stake. Managing Director Shekhar Golchha personally holds a 5 percent stake in the company.