FPO Overview: Vijaya Laghubitta Bittiya Sanstha Limited (VLBS)

The Vijaya Laghubitta Bittiya Sanstha Limited (VLBS) has officially opened its Further Public Offering (FPO) to the general public starting today, January 5, 2026 (Poush 21, 2082).

​If you are looking to diversify your portfolio or are a regular investor in the Nepalese capital market, this is a significant event. Here is a comprehensive breakdown of everything you need to know about the Vijaya Laghubitta FPO.

​📢 FPO Overview: Key Dates & Figures

​This FPO is not a new IPO but an additional issuance of shares to the public to balance the company's capital structure.



Why is Vijaya Laghubitta Issuing an FPO?

​The primary reason for this FPO is the merger history of the company. In July 2023, Vijaya Laghubitta merged with Naya Sarathi Laghubitta on a 1:1 share swap ratio.

​Post-merger, the shareholding structure became skewed, with promoters holding approximately 74.39% and the general public holding 25.61%. According to the Banks and Financial Institutions Act (BAFIA) and NRB regulations, a public company must maintain a minimum of 30% public shareholding. This FPO of 466,817 units is designed to bridge that gap and bring the promoter-to-public ratio to the required 70:30.

​📈 Financial Health & Credit Rating

​Before investing, it is crucial to look at the "engine" of the company.

  • ​Financial Performance (Q1 FY 2025/26): The company reported a net profit of approximately NPR 32 million. Its total assets stand at NPR 11.3 billion.
  • ​Non-Performing Loans (NPL): The gross NPL is relatively high at 13.6%, which is a point of concern common in the current microfinance sector in Nepal.
  • ​Capital Adequacy (CRAR): It stands at 9.6%, which is near the regulatory requirements.
  • ​ICRA Rating: ICRA Nepal has assigned a rating of [ICRANP-IR] B (downgraded from B+). This indicates a high risk regarding the timely servicing of financial obligations. The rating remains on "Watch with Negative Implications."

​💡 Investment Verdict: Should You Apply?

​The most attractive part of this FPO is the price gap.

​FPO Price: Rs. 100

Secondary Market Price: ~Rs. 765


​Applying for the FPO at Rs. 100 when the market price is over seven times higher is theoretically a "sure win" for capital gains if you are allotted shares. However, keep in mind:

  1. ​High Risk Rating: The ICRA rating suggests the company faces significant financial hurdles.
  2. ​Market Volatility: The microfinance sector has been under regulatory and social pressure recently.
  3. ​Lottery System: Given the high demand for "Rs. 100" shares in Nepal, the allotment will likely be done via a lottery where only a small percentage of applicants will receive 10 units.

​🛠️ How to Apply

​The process is identical to applying for an IPO:

  1. ​Log in to your Mero Share account (web or app).
  2. ​Go to the "My ASBA" section.
  3. ​Select "Current Issue" and look for Vijaya Laghubitta Bittiya Sanstha Limited - FPO.
  4. ​Enter the number of units (Minimum 10) and your CRN number.
  5. ​Submit the application.

​Final Thought: While the financial risks are visible in the NPL and credit rating, the massive discount compared to the market price makes this a highly attractive "lottery" for most retail investors.




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