Credit rating agency ICRA Monday signed an agreement with Nepalese private equity firm
Himalayan Infrastructure Fund Ltd to float a joint venture to enter the neighbouring market.
The company in a statement to the Bombay Stock Exchangesaid it will hold the "majority stake" in the proposed JV.
HIFL has a fund size of Rs 500 crore.
"The entry in Nepal once again highlights ICRA's abilityto think beyond borders. It also reaffirms our confidence in the future growth of the company of Nepal," ICRA Vice Chairman and Group CEO P K Choudhury said.
The company also announced setting up of a representative office in Kathmandu and appointed Deepak Kafle as resident director to oversee the operations there.
ICRA hopes to capitalise on its expertise accumulated over two decades in pioneering the establishment of Nepal's first rating agency, it said.
"The proposed JV is an important initiative for growth and professionalising of the financial system in Nepal," HIFL Chairman Prithvi Pande said.
Shares of ICRA were trading at Rs 777.10, up 0.45 per cent, in the late afternoon trade on the BSE.