Nexgen Management and Equity Solutions to convert into public limited company, increases authorized capital to NPR 1 billion

KATHMANDU, MAY 6: Nexgen Management and Equity Solutions has decided to amend its Memorandum and Articles of Association to convert the company into a public limited company. As part of this move, it will increase its authorized capital to NPR 1 billion and its issued capital to NPR 500 million.

The decision was made during a special general meeting of the company held last Sunday (May 4)  chaired by Director and Acting Chairperson Ajay Kumar Mishra at Maitidevi, Kathmandu.

During the meeting, Managing Director Ramesh Kumar Bhattarai informed attendees that non-performing loans (NPLs) and non-banking assets of banks and financial institutions are rising rapidly. He highlighted that recent monetary policies and the government’s policy and program documents have already acknowledged the need to establish asset management companies to address these issues.

In line with its core function of asset management, Nexgen Management plans to raise its capital and include banks, financial institutions, insurance companies, and other entities as part of its operations, necessitating its transformation into a public limited company.

Chairperson Ajay Kumar Mishra stated that in many countries, asset management companies have played a crucial role in resolving non-performing loans, thereby supporting the banking and financial sectors. He emphasized that the time has come for such initiatives in Nepal as well, and Nexgen Management should take the lead in this sector.

For the past year, Nexgen Management has been working as a corporate advisor to distressed borrowers of banks and financial institutions. It facilitates loan restructuring, reoperation, and even the sale of distressed assets. The company was established with investment from former bankers.