Rastriya Khadya Bank to Issue IPO Worth Rs 300 Million

Rastriya Khadya Bank Limited, Nepal’s pioneer agriculture-based enterprise established with private-sector investment, has announced plans to issue an Initial Public Offering (IPO) worth Rs 300 million. The company will float 3 million shares valued at Rs 100 each, equivalent to 30 percent of its paid-up capital of Rs 1 billion.

The IPO is scheduled to be approved during the company’s annual general meeting on October 11, after which the shares will be issued within one year. Of the total shares, 10 percent will be allocated to Nepali migrant workers, 6 percent to company employees, and the remaining will be offered to the general public, according to Chairman Shankar Nath Upreti. Global IME Capital has been appointed as the issue manager under an agreement already signed with the company.

Founded about four years ago to promote organic agricultural production, the Rastriya Khadya Bank has been working with farmers across more than 30 districts. The company focuses on cultivating, processing, and branding agricultural products in partnership with local farmers before bringing them to market.

The bank was initiated with contributions from over 800 stakeholders, including agricultural experts, cooperatives, returnee migrants with farming experience, and investors interested in the agriculture sector. Currently, it has engaged nearly 200,000 farmers. To strengthen market access, the company has established sales outlets in locations such as Baneshwor, Boudha, and Lokanthali within the Kathmandu Valley.

On the production side, the bank has leased 55 bighas of land in Jhapa, Morang, and Sunsari districts to cultivate various crops. In Jhapa’s Gauradaha, it is working with farmers to cultivate local Basmati rice across 405 bighas. The company has also launched pilot projects in Banke, Bardiya, Kailali, and Kanchanpur. In Bardiya’s Gulariya Municipality, it has cultivated paddy on 60 bighas of its own land while collaborating with farmers to farm paddy on an additional 500 bighas.

Chairman Upreti stated that while the food bank has so far concentrated on agricultural production, it plans to gradually expand into agro-based industries in the coming years.