In a testament to Nepal’s burgeoning economic landscape, the Securities Board of Nepal (SEBON) is orchestrating a wave of Initial Public Offerings (IPOs) in the Fiscal Year 2080/81.
This surge reflects not only the resilience of the nation’s financial ecosystem but also the growing investor confidence in the potential of Nepalese enterprises. In this comprehensive exploration, we delve into the details of the most anticipated IPOs, shedding light on the regulatory journey, industry diversification, and the broader implications for Nepal’s capital market.
1. Solu Hydropower Limited: Harnessing Hydroelectric Potential
Solu Hydropower Limited stands at the forefront of Nepal’s hydropower sector, gearing up for a monumental IPO. With plans to issue 20,000,000 shares, the company aims to secure a substantial NPR 2,000,000,000 in capital. Nabil Investment Banking Limited is at the helm of managing the IPO, with the application date set for 2080/06/23. The regulatory process commenced with a comment sent on 2080/08/15, and stakeholders received a prompt reply on 2080/08/19.
2. Sanvi Energy Limited: Illuminating the Path Forward
Sanvi Energy Limited adds dynamism to the IPO scene, offering 3,790,000 shares in the hydro sector with a target capital of NPR 379,000,000. Managed by Nepal SBI Merchant Banking Limited, the application process began on 2080/05/27. The regulatory journey included a comment sent on 2080/08/12, and stakeholders received a decisive reply on 2080/08/21.
3. Him Star Urja Company Ltd.: Empowering Nepal’s Energy Future
Him Star Urja Company Ltd. is a pivotal player in Nepal’s energy sector, preparing for an IPO involving 1,119,000 shares and an anticipated capital of NPR 111,900,000. NIC Asia Capital Ltd. is steering the IPO ship, with the application process initiated on 2080/02/31. Following a comment sent on 2080/06/15, the regulatory journey concluded with a comprehensive reply on 2080/08/21.
Diverse Sectors, Varied Offerings: A Multifaceted IPO Pipeline
Beyond the hydro sector, the IPO pipeline in Nepal reveals a kaleidoscope of industries and enterprises. Companies such as Dish Media Network Ltd., Beni Hydropower Project Ltd., Yambaling Hydropower Limited, Apex Hospitality Limited, SY Panel Nepal Limited, Taksar Pikhuwa Khola Hydropower Limited, Hotel Forest Inn Ltd., Orchid Holdings Ltd., and Bikash Hydropower Company Ltd. are all progressing through various stages of their IPO processes, reflecting the nation’s commitment to sectoral diversification.
Recent Developments: Replied and Under Review
Several companies have traversed the regulatory landscape, receiving replies and currently residing in the under-review phase. Notable mentions include Daramkhola Hydro Energy Ltd., Richet Jalbidhyut Company Limited, Mabilung Energy Limited, Sarbottam Cement Ltd., Accord Pharmaceuticals Limited, Trade Tower Ltd., Sanima Hydropower Ltd., Kantipur Television Network Ltd., IME Limited, Bhujung Hydropower Limited, and Jagdamba Steels Limited.
Awaiting Further Action: Processing Status and Remarks
Reliance Spinning Mills Ltd., after undergoing a rigorous regulatory process, is now in a waiting phase for compliance. Additionally, companies like Accord Pharmaceuticals Limited, Trade Tower Ltd., Sanima Hydropower Ltd., Kantipur Television Network Ltd., IME Limited, Bhujung Hydropower Limited, and Jagdamba Steels Limited are awaiting replies or compliance, marking a critical juncture in their IPO journey.
Conclusion: A Dynamic and Resilient IPO Landscape
Nepal’s IPO landscape, characterized by its dynamism and resilience, is on the precipice of transformative growth. As the SEBON diligently oversees the intricate processes, investors and stakeholders alike eagerly anticipate the successful completion of these offerings, propelling Nepal’s capital market to new heights. The confluence of diverse sectors and the commitment to regulatory transparency sets the stage for a prosperous future, underlining Nepal’s emergence as a robust player in the global economic arena.
| S.N. | Company Name | Sector | Type of Issue | No. of Shares | Amount of Issue | Issue Manager |
|---|---|---|---|---|---|---|
| 1 | Solu Hydropower Limited | Hydro | IPO | 20,000,000 | 2,000,000,000 | Nabil Investment Banking Limited |
| 2 | Sanvi Energy Limited | Hydro | IPO | 3,790,000 | 379,000,000 | Nepal SBI Merchant Banking Ltd. |
| 3 | Him Star Urja Company Ltd. | Hydro | IPO | 1,119,000 | 111,900,000 | NIC Asia Capital Ltd |
| 4 | Dish Media Network Ltd. | Others | IPO | 13,584,955 | 1,358,495,500 | Prabhu Capital Ltd. |
| 5 | Beni Hydropower Project Ltd. | Hydro | IPO | 2,080,000 | 208,000,000 | NMB Capital Limited |
| 6 | Yambaling Hydropower Limited | Hydro | IPO | 2,800,000 | 280,000,000 | Muktinath Capital Limited |
| 7 | Apex Hospitality Limited | Others | IPO | 2,400,000 | 240,000,000 | Himalayan Capital Limited |
| 8 | SY Panel Nepal Limited | Manufacturing | IPO | 5,232,548 | 523,254,800 | Prabhu Capital Limited |
| 9 | Taksar Pikhuwa Khola Hydropower Limited | Hydro | IPO | 4,230,668 | 423,066,800 | Prabhu Capital Limited |
| 10 | Hotel Forest Inn Ltd. | Hotels and Tourism | IPO | 9,800,000 | 980,000,000 | NIC Asia Capital Ltd. |
| 11 | Orchid Holdings Ltd. | Hotels and Tourism | IPO | 11,500,000 | 1,150,000,000 | Laxmi Capital Market Ltd. |
| 12 | Bikash Hydropower Company Ltd. | Hydro | IPO | 4,454,596 | 445,459,600 | Prabhu Capital Ltd. |
| 13 | Daramkhola Hydro Energy Ltd. | Hydro | IPO | 3,950,000 | 395,000,000 | Laxmi Capital Market Ltd. |
| 14 | Richet Jalbidhyut Company Limited | Hydro | IPO | 1,176,450 | 117,645,000 | NIMB Ace Capital Limited |
| 15 | Mabilung Energy Limited | Hydro | IPO | 1,890,530 | 189,053,000 | Laxmi Capital Market Ltd. |
| 16 | Sarbottam Cement Ltd. | Manufacturing and Processing | IPO (Book Building) | 3,600,000 | 1,299,240,000 | Global IME Capital Ltd. |
| 17 | Reliance Spinning Mills Ltd. | Manufacturing and Processing | IPO (Book Building) | 770,640 | – | Global IME Capital Ltd. |
| 18 | Accord Pharmaceuticals Limited | Others | IPO | 706,909 | 70,690,900 | Global IME Capital Ltd |
| 19 | Trade Tower | Others | IPO | 1,158,980 | 115,898,000 | Laxmi Capital Market Ltd |