Kathmandu: NexGen Management and Equity Solutions, a company gearing up to operate as an asset management firm in Nepal, has officially transitioned into a public limited company following a significant capital increase.
The decision to convert the company into a public limited entity was made during a special general assembly held on 4 May. Subsequently, the Office of the Company Registrar, on 11 July, approved the transformation.
With this, the company’s authorized capital has been set at Rs 1 billion, and issued capital at Rs 500 million.
NexGen is chaired by Devendra Pratap Shah, a former banker and ex-chairman of the Insurance Board. The company’s executive leadership is headed by Ramesh Kumar Bhattarai, also a former banker and insurance sector regulator.
NexGen Management is primarily focused on managing non-performing loans (NPLs) and non-banking assets of banks and financial institutions. In the absence of a formal Asset Management Company (AMC) Act, NexGen has been offering corporate advisory services to distressed borrowers and business owners seeking capital expansion and operational improvement.
The company has reported consistent net profits for the past three consecutive years, demonstrating its financial viability and market relevance.
Amid growing concerns over the rising volume of NPLs in the banking sector, both Nepal Rastra Bank (NRB) and the Government of Nepal have been working on introducing a legal framework for asset management companies. Though a draft bill has already been prepared, there remains uncertainty over the minimum capital requirements for such institutions.
Drawing from international and regional practices, experts argue that Nepal will require small, medium, and large-scale AMCs based on the size and nature of bad loans across Class “A”, “B”, “C”, and “D” financial institutions. Acknowledging this market demand, NexGen has increased its capital up to NPR 1 billion in preparation for full-scale operations.
The company has also announced its intention to allocate 30 percent of its shares to the general public in the future, integrating broader public participation into its ownership structure.
In line with its expansion strategy, NexGen Management plans to establish subsidiary companies to strengthen its operational capacity and effectiveness as a comprehensive asset management institution.
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