10 Upcoming Initial Public Offerings (IPO) in Nepal

Updated on February 28, 2019
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Roberto is a research analyst for a stock brokerage company in Nepal. He has been writing about the Nepali stock market since 2013.

Over Rs 2 Billion Worth of IPOs Are in The Pipeline in Nepali Stock Market

Upper Tamakoshi Hydropower Limited floated over Rs 2.63 billion worth of IPO shares last year, the largest IPO in the history of Nepal ever. Dozens other companies are in the review process for floating their initial public shares to the general public, the details of which can be found below:

Since investing in IPOs in Nepal (i.e. primary market) is the safest stock investment option, investment in IPOs is a relatively quicker way to get more returns.

Why Is Investing in IPOs in Nepal Safe and Quick?

When IPO shares are allotted and listed in Nepal Stock Exchange (NEPSE), they can be freely traded. As per the provision, the range of the first transaction in NEPSE is within three times the company's book value. For example: if a company's book value per share is Rs 70, it can be traded within Rs 70 to Rs 210 range for the first transaction. If we analyze the history, all stocks begin their first transaction at the "three times" mark. So, one can easily triple their money as the IPO shares are sold for Rs 100 in Nepal.

Since the initial of C-ASBA procedure in applying IPO, the shares will be allotted within 10 days and listed within one month. This will make it easier for investors to double/triple/quadruple their initial investment with enough knowledge in a very small time period. Further, at least 10 shares are guaranteed for each applicant in IPO. Lottery system will only be used if there are not enough shares to allot every applicant a minimum of 10 shares.

IPOs coming in March 2019

These public issues have already received approval from the Securities Board of Nepal.

1. Sparsha Microfinance

With a capital of Rs 56 million, this microfinance company is planning to issue 269,630 units IPO shares to the general public. The shares will be issued at paid-up value of Rs 100. The company will issue shares under the issue management of Sanima Capital from March 10th to March 13th, 2019. If the issue goes under-subscribed during the 4 working days, it will accept applications till April 8th, 2019.

The IPO is being issued at par value of Rs 100 per unit.

Sparsha Laghubitta Bittiya Sanstha has posted a net profit after tax of only Rs 0.1 million until the end of 4th quarter of running fiscal year 2017-18 and has a book value of Rs 100 per share. Post IPO, its paid-up capital will reach Rs 82.96 million and its shares will be first traded in the range of Rs 100 to Rs 300.

Micro-finance Companies in Nepal are established to empower rural livelihood by providing micro-credit loans.
Micro-finance Companies in Nepal are established to empower rural livelihood by providing micro-credit loans. | Source

How lucky have you been so far to be allotted shares of microfinance companies in IPO?

Have you been allotted shares of microfinance companies often?

See results

2. Mountain Hydro Nepal Limited

Mountain Hydro Nepal Limited, established as a public company in 2016, is developing a 21.6 MW Lower Hewa Khola Hydropower plant in Panchthar district of Nepal. The company has published an offer letter to issue 1,816,110 shares to the general public as its IPO. The IPO will receive applications from investors from March 7th, 2019 to March 13th. 2019.

The hydropower company is hoping to raise Rs 181.61 million through this IPO, which the company will use to pay off its bridge gap loans.

There are more than 20 hydropower companies in Nepal that are also listed in Nepal Stock Exchange. This is the dam-site of Chilime Hydropower, which trades in NEPSE using the ticker symbol CHCL.
There are more than 20 hydropower companies in Nepal that are also listed in Nepal Stock Exchange. This is the dam-site of Chilime Hydropower, which trades in NEPSE using the ticker symbol CHCL. | Source

3. Greenlife Hydropower Limited (for project-affected locals)

With a plan to raise Rs 180 million from project-affected people of Dolakha district, Greenlife Hydropower Limited is issuing 18,00,000 shares till March 11th, 2019. The issue can only be subscribed by the residents of Dolakha district.

Upcoming IPOs in Nepal (2019) - Hydropower, Merchant Bankers & Manufacturing Companies

No. of IPO shares
Total IPO amount (Rs.)
IPO Price per share (Rs.)
Laughing Buddha Power Limited
Asha Laghubitta Bittiya Sanstha Limited.
Garjang Upatyaka Hydropower Limited
CBIL Capital Limited
Shuvam Power Limited
Union Hydropower Limited
CEDB Hydro Fund Limited
Himalaya Urja Bikas Company Limited
Shivam Cements Limited
Swabhimaan Microfinance Bittiya Sanstha Limited
CEDB Hydro Fund

How to Apply for an IPO

When any IPO is approved by the Securities Board, the issue manager (merchant banker appointed to manage the issue of initial public offering shares on behalf of the company) publishes the timeline of the issue in a national daily newspaper. Typically, the IPO application collection duration lasts for 4 days.

Interested applicants must apply for a minimum of 50 shares (i.e. Rs 5,000 at Rs 100 per stock). By visiting any of the ASBA-approved banks in Nepal, one can apply for the IPO. Apart from IPOs, applicants can also apply for Further Public Offerings and initial offering of mutual funds in Nepal through ASBA-approved banks and financial institutions.

Online Application System in IPO in Nepal

Applying for an issue can also be made online via a service called MeroShare. MeroShare is a product of CDS & Clearing Limited (CDSC), NEPSE's subsidiary that handles clearing and settlement of shares after they are traded in the secondary market.

The funds are held in your bank account and the money is deducted only if there are shares allotted to you.

IPO Application Overview (Mero Share)
IPO Application Overview (Mero Share)

Upcoming IPOs in Nepal (2019) - Microfinance Companies

No. of IPO shares
Total IPO Amount (Rs.)
IPO Price per Share (Rs.)
Sparsha Laghubitta Bittiya Sanstha Limited
Gurans Microfinance Bittiya Sanstha Limited
Janasewi Laghubitta Bittiya Sanstha Limited
Ganapati Laghubitta Bittiya Sanstha Limited

How safe, in your opinion, is investment in Initial Public Offerings in Nepal?

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Recent IPOs in Nepal and Their Market Prices

(click column header to sort results)
Last date of IPO issue  
Date when the market price hit triple the investment price  
Nadep Microfinance
June 27, 2018
August 30, 2018
2 months
Upper Tamakoshi Hydropower Limited
November 5, 2018
January 17, 2019
2 months
Nepal Sewa Laghubitta Bittiya Sanstha Limited
April 29, 2018
June 14, 2018
1.5 months
Aarambha Microfinance Bittiya Sanstha Limited
March 5, 2018
April 12, 2018
1 month
Radhi Bidyut Company Limited
December 21, 2017
June 17, 2018
6 months
Support Microfinance Bittiya Sanstha Limited
October 9, 2017
April 3, 2018
6 months
Nepal Hydro Developer Limited
August 16, 2017
November 15, 2017
3 months
Himalayan Power Partner Limited
June 19, 2017
August 21, 2017
2 months
United Modi Hydropower Limited
March 6, 2017
May 30, 2017
2.5 months
Samata Microfinance Bittiya Sanstha Limited
January 6, 2017
June 19, 2017
6.5 months
Chhyangdi Hydropower Limited
June 1, 2017
August 3, 2017
2 months
Swadeshi Laghubitta Bittiya Sanstha Limited
April 11, 2017
August 10, 2017
4 months
Synergy Power Development Limited
December 28, 2016
May 21, 2017
5 months
Forward Community Microfinance Bittiya Sanstha Limited
January 25, 2017
May 21, 2017
5 months
Arun Kabeli Power Limited
October 28, 2016
April 16, 2017
5.5 months
Dibyashwari Hydropower Limited
June 30, 2016
February 14, 2017
8 months
Khanikhola Hydropower Company Limited
June 1, 2016
January 12, 2017
6 months
Mero Microfinance Bittiya Sanstha Limited
March 24, 2016
September 5, 2017
5.5 months
RSDC Laghubitta Bittiya Sanstha Limited
August 24, 2016
February 8, 2017
5.5 months
Taking into consideration as Initial Investment amount = Rs 100 and Triple = Rs 300 per share

Average Time it takes to triple an investment in IPO = 4.1 months

(as of January 2019)

© 2017 Roberto Eldrum


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    • profile image


      2 months ago

      how to apply for promotor share

    • profile image

      12 months ago

      Ipo reading also

    • profile image


      22 months ago

      how to apply for promoter shares???

    • profile image


      2 years ago

      would it possible to provede ipo grading also


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