The Journey of Chhote lal Rauniyar: A Successful Investor in Nepal's Stock Market

The Journey of Chhotelal Rauniyar: A Successful Investor in Nepal's Stock Market

Chhotelal Rauniyar is a widely recognized figure in Nepal’s stock market, especially among those familiar with the ups and downs of investment. Having crossed over 60 years of life, Chhotelal is known today as a successful investor. Born in Kathmandu’s Makkhan neighborhood, he was the youngest of five brothers. His father, the late Sivanandan, and mother, the late Motidevi, named him Chhotelal, a name chosen by his teacher for being the youngest son. But Rauniyar’s contribution to Nepal’s stock market goes far beyond his name.

Coming from a family with a traditional textile business, Rauniyar always had a different mindset. He chose to leave behind the family trade and ventured into the garment industry, focusing on production and exports. However, life doesn’t always follow the same path. After his garment factory was forced to shut down, Rauniyar’s life took a new turn, one that he calls the "second innings" of his life.

Early Life and Career

At the young age of 15, Chhotelal passed his School Leaving Certificate (SLC) exam from Judhodaya School, securing second division. He continued his education in management, completing his Intermediate in Commerce (I.Com) from Public Youth Campus and his Bachelor’s in Commerce (B.Com) from Shanker Dev Campus. In 1977 (2034 B.S.), while still in his master’s studies at Tribhuvan University, his father passed away. After the mourning rituals, his sister gave him some money, which he decided to invest wisely.

With a strong sense of independence and entrepreneurial spirit, Rauniyar chose not to follow the family’s traditional business. Instead, he ventured into the garment industry, setting up a factory. His goal was clear: he wanted to travel, learn, and grow, avoiding stagnation in one place.

The Success of His Garment Business

Rauniyar’s garment business quickly gained success. He never compromised on quality, and as a result, orders began pouring in from countries like Japan and the United States. By 1977, just four years after opening his garment store, he established a full-fledged factory. His business thrived, employing more than 500 workers at its peak.

However, political changes in Nepal began to affect his business. With the rise of the Maoist insurgency, labor unions aligned with political factions began to form in his factory, leading to frequent disputes and strikes. This created delays in fulfilling orders and impacted the quality of his products, eventually leading to the decline of his once-flourishing business.

The Downfall of His Garment Empire

Imagine the emotional toll of having to shut down a business in which you’ve invested millions and employed hundreds of workers. The decline of Rauniyar’s garment business was a painful experience. Despite his best efforts, the political instability and constant labor unrest forced him to close his factory.

To escape the stress, Rauniyar traveled to London with his wife to visit their daughter. After two months abroad, he returned to Nepal, unsure of what to do next.

Starting the "Second Innings" in the Stock Market

Upon his return, Rauniyar found himself at a crossroads. He had lost his business, and now he needed to figure out a new path. During his morning walks, he encountered some old friends from the garment industry who had transitioned into the stock market. This piqued his interest, though he had little knowledge of how the stock market worked. He had bought shares in a few companies during his time in the garment business, but he wasn’t familiar with secondary market trading.

Nepal’s stock market was also in a slump at the time. Under the finance ministry of Baburam Bhattarai, who once referred to the stock market as a "gambling den," the market had plummeted from 1,175 points to just 350. Despite this, Rauniyar decided to enter the market, buying 250 shares of Siddhartha Bank.

A New Journey in the Stock Market

Having spent 28 years in the garment industry, Chhotelal was determined to build a new identity in the stock market. He discussed his ambitions with his wife, saying, "Just as I was known in the garment industry both in Nepal and abroad, I want to be recognized in the stock market too." His wife fully supported him in this endeavor.

Rauniyar’s persistence in the stock market paid off. Over the next ten years, he immersed himself in learning and understanding the market. His dedication and keen insights helped him become a respected figure in the investment community, eventually leading him to become the President of the Nepal Investors Forum.

Investment Strategy and Advice

Rauniyar attributes his success in the stock market to thorough research and careful selection of strong companies. He advises new investors to invest in companies that offer good dividends and bonuses. He particularly recommends sectors like banking, finance, life insurance, non-life insurance, and hydropower. However, Rauniyar emphasizes the importance of conducting a detailed study of a company before investing in its shares.

Conclusion: A New Identity in the Stock Market

Chhotelal Rauniyar’s journey from a successful garment industrialist to a leading figure in Nepal’s stock market is a testament to his resilience and adaptability. Despite facing the downfall of his business and the challenges of political instability, he reinvented himself and found success in a completely different field.

Today, Rauniyar is recognized as a key figure in Nepal’s stock market, and his story serves as an inspiration to many. His journey shows that with determination, patience, and the ability to learn from setbacks, one can achieve great heights, even after facing significant losses.

Rauniyar’s story is a reminder that life is full of opportunities, and those who are willing to seize them, even in times of crisis, can turn their fortunes around.