Profiting from IPOs in Nepali Stock Market NEPSE

How Long Does it Take for IPO Shares to Be Listed in NEPSE?

The safest answer? Not more than a month. Because it depends on the company and the share registrar.

Just for a quick summary, this is the stepwise IPO issuing process:

Before the IPO Concludes

  • 1) The company endorses the agenda to issue an IPO in its AGM.
  • 2) The company submits an application to SEBON, the regulatory body. The issue manager is already appointed by this time.
  • 3) SEBON then reviews the application and instructs the company to make necessary changes by sending its comment. This is a multi-step process.
  • 4) After approval, the company issues an offer letter with all the details of the IPO. This includes the IPO opening and closing date.
  • 5) The issue opens for four working days. Public holidays or Saturdays during the IPO opening period are not counted. Thus, investors get more time to apply for an IPO if there is a public holiday or a Saturday during this period.

After the IPO Issue

  • 6) Issue concludes and the issue manager declares the allotment date.
  • 7) Allotment concludes and lucky applicants are allotted the shares via an unbiased lottery (in most cases).
  • 8) The company appoints a share registrar.
  • 9) The share registrar submits a listing application on behalf of the company.
  • 10) NEPSE takes 2 to 3 days to review the application. The exchange then issues a public listing notice and determines the opening range for the first transaction.
  • 11) The shares are traded in the pre-open session. If a transaction is made at the prespecified range, the shares are traded in the main trading session on the same day.
  • 12) The stock is now completely in the hands of investors. The stock price is determined according to supply and demand.

In this article, we are primarily focused on how long it takes for an IPO stock to be listed in NEPSE after allotment. As is already clear in the stepwise summary above, NEPSE only takes 2 to 3 days to list the shares after the share registrar submits a listing application. Thus, the time gap depends on how long the company takes to appoint a share registrar and how long the share registrar takes to submit a listing application.

We can get a rough estimation by looking at the last few IPO processes.

1) Mahila Laghubitta

Allotted on: February 26, 2021
Listed on: March 15, 2021
Hence, took 18 days after allotment to be listed.

2) Greenlife Hydropower

Allotted on: February 19, 2021
Listed on: March 15, 2021
Hence, took 25 days after allotment to be listed.

3) NIFRA

Allotted on: January 29, 2021
Listed on: February 11, 2021
Hence, took 14 days after allotment to be listed.

4) Chandragiri Hills

Allotted on: January 22, 2021
Listed on: February 05, 2021
Hence, took 15 days after allotment to be listed.

5) Prabhu Life Insurance

Allotted on: December 25, 2020
Listed on: January 1, 2021
Hence, took 8 days after allotment to be listed.

6) United Idimardi and RB Hydropower

Allotted on: November 29, 2020
Listed on: December 18, 2020
Hence, took 20 days after allotment to be listed.

7) Mountain Energy Nepal

Allotted on: December 02, 2020
Listed on: December 15, 2020
Hence, took 14 days after allotment to be listed.

1 thought on “How Long Does it Take for IPO Shares to Be Listed in NEPSE?”

Leave a Comment

Your email address will not be published. Required fields are marked *