Swastik Microfinance to Issue IPO from Asar 27, Priority for Nepalis Working Abroad

Swastik Laghubitta Bittiya Sanstha Ltd. is set to open its Initial Public Offering (IPO) from Asar 27 (July 11). In the first phase, the IPO will be issued exclusively to Nepali citizens working abroad, with 23,100 shares allocated — equivalent to 10% of the total issue.

The company is issuing 231,000 shares, representing 40% of its issued capital of NPR 57.75 million. Applicants can apply for a minimum of 10 shares and a maximum of 5,000 shares. The IPO will remain open until Shrawan 9 (July 24). Credit rating agency ICRA Nepal has assigned the IPO a ‘[ICRA-NP] IPO Grade 4’ rating (ICRA IR B), indicating a high risk in meeting financial obligations on time.

Out of the total shares, 0.5% (1,155 shares) have been reserved for employees, and 5% (11,550 shares) for mutual funds. After completing the issuance for migrant workers, the remaining 195,195 shares will be open to the general public.

As of the end of Chaitra (mid-April), the company reported a net profit of NPR 2.53 million. It has retained earnings of NPR 4.98 million and a reserve fund of NPR 26.68 million. The company’s current Earnings Per Share (EPS) is NPR 7.33, and its net worth per share is NPR 191.40. As per the IPO prospectus, Swastik projects its EPS to reach NPR 26.50 and net worth to NPR 194.16 in three years.