Norvic Hospital raises over Rs 2 billion in IPO

लगानी न्यूज

१२ श्रावण २०८३, मंगलवार १४:३४July 28, 2026

. Norvic International Hospital and Medical College, which is preparing for the initial public offering (IPO), has earned more than Rs 2 billion in the first nine months of the last fiscal year. The company earned an operating income of Rs 2.04 billion in the first nine months of the last FY.

As of mid-April of the last fiscal year, the company’s operating profit (PBILDT margin) reached 32.91 percent, which is a significant improvement over the previous year.TAG_OPEN_div_50 The company’s revenue from operations increased to Rs 2.03 billion in 2024 from Rs 1.94 billion in 2023.

Similarly, the company’s operating income has increased to Rs 2.26 billion in 2025.TAG_OPEN_div_48 On the other hand, the operating profit rate of the company has also been improving year on year. According to the company, the operating profit rate has increased from 22.15 percent in 2023 to 23.66 percent in 2024. Similarly, the operating profit of the company was 26.69 percent in 2025.

The company’s debt-to-capital ratio (overall gearing) has also improved.TAG_OPEN_div_46 This ratio has come down from 1.84 percent in the fiscal year 2023 to 1.17 percent by mid-April of the last fiscal year. According to the rating agency, this indicates that the debt burden on the company is gradually decreasing.

Similarly, the interest coverage ratio, which measures the ability to pay interest, has increased from 4.37 percent in 2023 to 24.25. This means that the company is paying the interest on the loan from its operating income smoothly.

The total loan-to-cash flow ratio also declined to 2.69 from 4.16 in 2023.TAG_OPEN_div_42 This shows that the company’s cash flow position is getting stronger.

The company’s financial statement has been strengthened and the loan rating has also been upgraded. CARE Ratings Nepal has upgraded Norvic’s long-term and short-term banking facility ratings.

The company’s long-term bank credit rating of Rs. 2.74 billion has been upgraded to CARE-NP BBB Plus from CARE-NP BBB.TAG_OPEN_div_38 Similarly, the rating of short-term bank loan facility worth Rs 50.8 million has been increased from CARE-NP A-3 plus to CARE-NP A-2.

Currently TAG_OPEN_div_36, the company has a total banking facility of Rs 2.79 billion from banks and financial institutions. This includes long-term loan of Rs 2.74 billion, working capital loan of Rs 40.7 million and letter of credit and bank guarantee facility of Rs 10.1 million.

A large part of TAG_OPEN_div_34 the long-term loan has been used to expand hospital infrastructure, purchase advanced medical equipment and other long-term investments.

The operating loan is used for the management of daily operating expenses and for the purchase of letters of credit and bank guarantees, equipment, and equipment, according to the company.TAG_OPEN_div_32

CARE Ratings said the rating was upgraded due to improvement in financial indicators, continued growth in operating income, expansion in profitability, reduction in debt burden and strengthening of the ability to serve interest.TAG_OPEN_div_30 This shows that the company’s ability to repay loans is stronger than before and the risk of default is reduced.

Established in 1993, Norvic Hospital has been providing health services for more than three decades.TAG_OPEN_div_28 The company was converted into a public limited company on July 7, 2021. The company has been operating a 116-bed multi-specialist hospital in Kathmandu.