10 Upcoming Initial Public Offerings (IPOs) in Nepal

Updated on February 3, 2018
neosurk profile image

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

Upper Tamakoshi Hydropower Limited has applied to the Securities Board of Nepal (SEBON) to issue Rs 2.63 billion worth of IPO shares, 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.

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.

SEBON has also made it mandatory for the shares to be allotted within 20 days and listed within two months. This will make it easier for investors to double/triple/quadruple their initial investment with enough knowledge. Further, at least 10 shares are guaranteed in IPO. Lottery system will only be used if there are not enough shares to allot every applicant a minimum of 10 shares.

Upcoming IPOs in Nepal (2018) - Hydropower Companies

S.N.
Company
No. of IPO shares
Total IPO amount (Rs.)
IPO Price per share (Rs.)
1
Laughing Buddha Power Limited
9,78,000
9,78,00,000
100
2
Akhukhola Jalabidhyut Company Limited
800,000
80,000,000
100
3
Garjang Upatyaka Hydropower Limited
200,000
20,000,000
100
4
Joshi Hydropower Development Company Limited
371,400
37,140,000
100
5
Shuvam Power Limited
200,000
20,000,000
100
6
Union Hydropower Limited
633,745
63,374,500
100
7
CEDB Hydro Fund Limited
2,289,300
228,930,000
100
8
Sanjen Jalavidhyut Company Limited
8,760,000
876,000,000
100
9
Rasuwagadhi Hydropower Company Limited
16,421,040
1,642,104,000
100
10
Panchakanya Mai Hydropower Limited
1,100,000
110,000,000
100
11
Upper Tamakoshi Hydropower Limited
15,885,000
1,588,500,000
100

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.

Upcoming IPOs in Nepal (2018) - Microfinance Companies

S.N.
Company
No. of IPO shares
Total IPO Amount (Rs.)
IPO Price per Share (Rs.)
1
Nepal Sewa Laghubitta Bittiya Sanstha Limited
180,000
18,000,000
100
2
Samudayik Laghubitta Bittiya Sanstha Limited
300,000
30,000,000
100
3
Asha Microfinance Bittiya Sanstha Limited
165,000
16,500,000
100
4
Nadep Microfinance Bittiya Sanstha Limited
480,000
48,000,000
100

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

See results

Recent IPOs and Their Market Price

(click column header to sort results)
Company  
Last date of IPO issue  
Date when the market price hit triple the investment price  
Time  
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

© 2017 Roberto Eldrum

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      sk111111 8 months ago

      how to apply for promoter shares???

    • profile image

      mahesh 10 months ago

      would it possible to provede ipo grading also

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, toughnickel.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: "https://toughnickel.com/privacy-policy#gdpr"

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)