Kathmandu, August 25

The wait could soon be over for those who have developed an interest to take a plunge in the country’s capital market or are planning to make additional investment in the secondary market. This is because a total of Rs 13.37 billion worth of initial public offerings (IPOs), further public offerings (FPOs) and rights shares are about to be issued by 33 companies in the near future.

According to data maintained by Securities Board of Nepal (SEBON), the secondary market regulator, 18 firms have applied to issue IPOs and FPOs worth Rs 3.41 billion or 50,288,763 unit shares. Of them Butwal Power Company, Premier Insurance and NMB Bank have applied for FPO, while 15 others have applied for new issues.

In the pipeline

Company

Unit

Amount

Type

Rashuwagadhi Hydropower

16421040

1,642,104,000

IPO

Panchakanya Mai Hydropower Ltd

1,100,000

110,000,000

IPO

Radhi Bidyut Company Ltd

764,550

76,455,000

IPO

Akhukhola Jalbidhut Co Ltd

800,000

80,000,000

IPO

Garjang Upatyaka Hydro Power Ltd

200,000

20,000,000

IPO

Joshi Hydropower Development

371,400

37,140,000

IPO

Shuvam Power Ltd

200,000

20,000,000

IPO

Sanjen Jalavidhyut Co

8,760,000

876,000,000

IPO

Laughing Buddha Power Nepal

978,000

97,800,000

IPO

Unique Hydel Co

550,000

55,000,000

IPO

CEDB Hydro Fund

2,289,300

228,930,000

IPO

Kalika Power Company

600,000

60,000,000

IPO

Samudayik Laghubitta Bittiya Sanstha

300,000

30,000,000

IPO

Unnati Microfinance Bittiya Sanstha

165,000

16,500,000

IPO

Union Hydropower Ltd

633,745

63,374,500

IPO

Premier Insurance

659,565

Not available

FPO

Butwal Power Company Ltd

4,081,000

Not available

FPO

NMB Bank

11,415,163

Not available

FPO

Reliance Finance

2,306,571.60

230,657,160

Rights share

Civil Bank Ltd

20,740,886.75

2,074,088,675

Rights share

Karnali Development Bank

3,397,500

339,750,000

Rights share

Mount Makalu Development Bank

345,800

34,580,000

Rights share

Central Finance

463,443.50

46,344,350

Rights share

Prabhu Bank

23,525,608

2,352,560,800

Rights share

Green Development Bank

4,000,000

400,000,000

Rights share

Asian Life

4,027,966.20

402,796,620

Rights share

Shree Investment and Finance

2,867,225.62

286,722,562

Rights share

Api Power Company

21,000,000

2,100,000,000

Rights share

Sri Ram Sugar Mills

8,903,949.81

890,394,981

Rights share

Prudential Insurance

1,283,040

128,304,000

Rights share

Guheswori Merchant Banking and Finance

1,973,928.77

197,392,877

Rights share

Nepal Community Development Bank

2,643,538.80

264,353,880

Rights share

Bhargav Bikash Bank

2,112,000

211,200,000

Rights share

Among them, SEBON has reviewed and sent its comment to three companies expressing some concerns about their public offering. Similarly, SEBON is waiting to hear back from two companies in regards to compliance and the secondary market regulator is reviewing the proposal of 13 companies.

Out of a total 18 companies that have applied for IPO and FPO, 14 are hydropower companies, two are development banks and one each from insurance and banking group. Most of the hydropower companies have proposed to issue IPO for people affected in their site areas.

Executive Director and Spokesperson for SEBON Niraj Giri said that IPOs offer the best investment option in the stock market.

However, 12 companies out of the total 15 that have applied for rights share issue are from banking group. “Banks and financial institutions are under pressure to increase their paid-up capital, so they are issuing rights shares,” Giri explained.

Nepal Rastra Bank — the central monetary authority — had directed the banks and financial institutions (BFIs) to increase their paid-up capital to Rs eight billion from Rs two billion within last fiscal.

According to Share Registration and Issue Regulation 2016, the companies that receive final approval from SEBON would have to issue shares to the public. “Each company will get a 60-day period to issue shares to the public,” Giri informed.