Upcoming FPO in Nepal in 2078 (2021) – Share Gyan

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Upcoming FPO in Nepal

Here is the list of further public offerings in Nepal that are in the SEBON’s pipeline. These companies have submitted their initial application for the FPO issue. After approval from the securities board of Nepal (SEBON), these companies can issue FPO to the public. You can also check out the list of Upcoming IPOs in Nepal.

Upcoming FPOs in Nepal (for FY 2078/79)

1. Kisan Laghubitta Bittiya Sanstha

Sector: Microfinance
No of Shares: 1,298,259
Rate: Rs.125
Amount of Share: Rs. 162,282,436.25
Issue Manager: Muktinath Capital Ltd.


2. Naya Sarathi Laghubitta Bittiya Sanstha Ltd.

Sector: Microfinance
No of Shares: 329,649
Rate: Rs.116
Amount of Share: Rs. 38,239,284.00
Issue Manager: NMB Capital Ltd.


3. Mirmire Laghubitta Bittiya Sanstha Ltd.

Sector: Microfinance
No of Shares: 51,316
Rate: Rs.177.8
Amount of Share: Rs. 9,123,984.80
Issue Manager: Nepal SBI Merchant Banking Ltd.

What is Further Public Offering (FPO)?

Further Public Offering is otherwise known as follow-on public offering or FPO is the issuance of shares of an already listed company. Company issues further shares to the public after the Initial Public Offering (IPO) to collect more funds. In FPO, anyone can apply for its shares. In some countries, FPO is also called secondary offerings because it occurs after primary offerings.

Why Do Companies Issue FPO?

To raise additional capital, companies have many options. Such as taking an institutional or individual loan, issuing the right share to collect additional money from existing shareholders, and collecting money from the public. Companies chose the FPO option to raise equity reducing the debt.

When Do Companies Issue FPO?

As per the rules and regulations mentioned in the Company Act 2063 (2006), companies that are listed in NEPSE must have at least a 30% stake from the general public. The rest of the 70% stake belongs to the promotors of the company. If the total stake of the general public comes down below 30%, the company must issue additional shares to maintain the public-promotor ratio to 70:30. Likewise, companies must also have a minimum of 51% stake from their promotors. If the promotor shareholding ratio comes below 51%, the company should float further issues to maintain the 51% stakeholding.

Securities Registration and Issue Regulation 2065

What is the Rate of FPO in Nepal?

Companies issue FPO at a premium price. i.e the general public can not buy shares at the face value of Rs. 100. The securities board of Nepal has set the guideline for price determination.

how premium price determined

Upcoming FPOs in Nepal (for FY 2078/79)

  1. Kisan Laghubitta Bittiya Sanstha
  2. Naya Sarathi Laghubitta Bittiya Sanstha
  3. Mirmire Laghubitta Bittiya Sanstha

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