Just like the NEPSE index, the IPO craze in Nepal is at its all-time high. We’ve had numerous successful IPO issues in the past, which directly means investors profited handsomely by investing in these IPOs. While writing this article, CDSC reports that we have 27,61,412 Demat accounts in the country. Just a few months back, this number would only be anyone’s wildest imagination.
The IPO craze is actually a good thing for NEPSE and the national economy. We want every citizen to invest their money for the betterment of the nation, not have it frozen in bank accounts or jewelry.
Upcoming IPO Issues
A company issues an IPO to raise capital from the general public. To do this, there are a number of criteria that it must fulfill. This is why, when a company wishes to issue an IPO, it has to submit an application to SEBON. SEBON (Securities Board of Nepal) is basically the caretaker and patrol police of the Nepalese stock exchange.
SEBON first reviews the applications sent by companies to issue an IPO. It then sends instructions to the companies if needed, a process called commenting. After the company makes the necessary amendments, the Board then approves the application and the companies are allowed to issue an IPO to the general public.
Ongoing IPO
While writing this article, we have an ongoing IPO issue of Greenlife Hydropower Limited. Greenlife Hydropower Limited has opened the issue of 34,96,400 units worth Rs 34.96 crore as Initial Public Offering to the general public from Magh 23, 2077.
According to the issue manager, 8,14,710 applicants have applied for a total of 1,48,60,170 units. This is the data as of 5 pm yesterday. Thus, the issue is oversubscribed by over 4.57 times. The issue is also oversubscribed in terms of the number of applicants given that only 3,25,165 applicants will get the shares. Thus, investors who haven’t submitted their applications till now can only apply for 10 units. The lottery is confirmed for 10 units each. The issue will close tomorrow.
The company whose IPO Date is Already Fixed
A company by the name Mahila Laghubitta is already set to issue an IPO. Mahila Laghubitta will issue 4,00,000 units worth Rs 4 crore as Initial Public Offering to the general public from Magh 30. The early closing date of this issue is on Falgun 04 and if the issue is not fully subscribed till then, the deadline can be extended up to Falgun 14, 2077.
The Company whose IPO request has been approved by SEBON but IPO date is not fixed
SEBON has approved the IPO issue of Ru Ru Jalabidhyut Pariojana Limited.
The company has a total of 40,77,055 shares registered. 4,07,705 unit shares will be issued to the locals at the rate of Rs. 100. Meanwhile, 4,07,706 units will be issued to the general public at a premium rate of Rs. 120.
These are the IPO Applications Currently Under Review by SEBON
- IPO of CBIL Capital Limited
Sector: Merchant Bank
No. of shares: 3,00,000
Issue Manager: Nepal SBI Merchant Bank Ltd.
2. Mailung Khola Jal Vidhyut Co. Ltd.
Sector: Hydropower
No. of shares: 7,36,286
Issue Manager: Siddhartha Capital
3. Madhya Bhotekoshi Jalvidyut Co. Ltd.
Sector: Hydropwoer
No. of shares: 1,50,00,000
Issue Manager: Global IME Capital
SEBON has already reviewed these IPO applications and sent comments
- Shuvam Power Limited
Sector: Hydropower
No. of shares: 5,80,580
Issue Manager: CBIL Capital
2. Emerging Nepal Limited
Sector: Others
No. of shares: 5,00,000
Issue Manager: NIC Asia Capital
3. CEDB Hydropower Development Co. Ltd.
Sector: Others
No. of shares: 25,18,230
Issue Manager: Sunrise Capital
4. Terhathum Power Company Ltd.
Sector: Hydropower
No. of shares: 12,00,000
Issue Manager: NIBL Ace Capital
5. Himalayan Hydropower Limited
Sector: Hydropower
No. of shares: 22,50,000
Issue Manager: Global IME Capital
6. Bindhyabasini Hydropower Development Co. Ltd.
Sector: Hydropower
No. of shares: 25,00,000
Issue Manager: Sanima Capital
7. Dish Media Network Limited
Sector: Others
No. of shares: 23,85,929
Issue Manager: Global IME Capital
8. Nyadi Hydropower Limited
Sector: Hydropower
No. of shares: 40,50,000
Issue Manager: Global IME Capital
9. Jyoti Life Insurance Co. Ltd.
Sector: Insurance
No. of shares: 66,00,000
Issue Manager: NMB Capital
IPO requests of these companies are under preliminary review
- Sahas Urja Limited
Sector: Hydropower
No. of shares: 1,05,00,000
Issue Manager: NIBL Ace Capital
2. Samling Power Company Ltd.
Sector: Hydropower
No. of shares: 12,30,000
Issue Manager: Nepal SBI Merchant Banking
3. Buddha Bhumi Nepal Hydro Power Co. Ltd.
Sector: Hydropower
No. of shares: 12,00,000
Issue Manager: Civil Capital Market
How to Apply for These IPOs
After these companies get approval from SEBON, they announce the date of the IPO issue in coordination with NEPSE and CDSC. This is when I update the date on my Instagram page @nepsetrader.
You should apply for the IPOs during this time frame. Perhaps these links will be helpful:
- How to Open a Demat Account and Invest in IPO
- Beginners guide to invest in NEPSE like a Pro
- How to correctly log into meroshare for the first time (without getting blocked)
- You Will Understand IPO After Reading This
How to Check IPO Allotment Result
After the IPO issue is completed, the issue manager does the allotment. Meroshare, the online application portal generally updates the result within a few hours of the allotment.
You can also check IPO result by entering your Demat account number in different news portals. I particularly like the platform provided by Sharesansar.
