By Sandeep Chaudhary
SEBON Releases Latest FPO Pipeline—Over Rs. 229 Million Under Review
SEBON’s latest Further Public Offering (FPO) Pipeline Report for Fiscal Year 2082/83 highlights an active movement in the microfinance sector as institutions seek fresh equity injections through premium and par-value offerings. A total of Rs. 229 million+ worth of FPO proposals are currently under review, showcasing the growing need for capital strengthening, regulatory compliance, and expansion within Nepal’s microfinance ecosystem. The pipeline is led by Matribhumi Laghubitta Bittiya Sanstha, which has submitted an FPO application for 1.15 million shares at Rs. 100, totaling Rs. 114.99 million—indicating a strategic move to increase capital adequacy and upgrade financial capacity for scaling rural credit services. Similarly, National Laghubitta Bittiya Sanstha has progressed to the “Reviewed and Comment Sent” stage with 669,900 shares, initially proposed at face value, but updated to a premium FPO price of Rs. 270.49, signaling confidence in its market valuation and strong performance outlook.
Another key player, Vijay Laghubitta Bittiya Sanstha, has also submitted an FPO of 466,817 shares, with the issue manager NMB Capital already receiving and responding to SEBON’s comments, indicating that the offering is advancing through the regulatory process. All three microfinance institutions reflect the sector’s broader trend of pursuing FPOs to strengthen their balance sheets, meet growing credit demand, and align with Nepal Rastra Bank’s evolving microfinance regulatory standards. Notably, the pipeline does not include companies from other sectors, showing that microfinance remains the primary driver of FPO activity for the current fiscal year. SEBON’s frequent requests for updated details, premium price adjustments, and compliance documents indicate a tightened regulatory environment, ensuring higher transparency and strong governance before allowing these public offerings to proceed. Overall, Nepal’s FPO environment is set for growth, with microfinance institutions leading the charge as they aim to expand outreach, enhance lending capacity, and improve long-term financial stability.
