IPO News
Mega IPO Wave Set to Transform Nepal's Primary Market, Offering Hope to Retail Investors
For far too long, securing an Initial Public Offering (IPO) in the Nepali stock market has felt less like an investment opportunity and more like a lottery. With the number of demat accounts now exceeding a staggering 6 million, the available IPO shares have often been limited to just a few hundred thousand units. This severe imbalance has meant that the "10-kitta policy" (a minimum application for 10 shares) has barely sustained the market, leaving the vast majority of retail investors reliant on sheer luck to receive an allocation. This frustrating scenario has led to widespread disappointment among the investing public. However, a significant shift appears to be on the horizon. The Securities Board of Nepal (SEBON) currently has a robust pipeline of over a dozen powerful companies, each planning to issue more than 10 million shares. These "mega IPOs" are poised to transform the primary market, offering a strong possibility for general investors to secure a more substantial and assured allocation of shares, even if it's a modest quantity. This influx of large-scale offerings could inject much-needed enthusiasm and fairness into Nepal's primary market. Strong companies across the hydropower, manufacturing, investment, and other sectors are now in the final stages of preparing for large-scale share issuances. The hydropower sector, in particular, is set to witness a significant boost, with four major companies collectively planning to issue billions worth of shares. Leading this charge is Siuri Nyadi Power Limited, which is preparing to issue an impressive 30,360,784 shares. NMB Capital has been appointed as the issue manager for this offering, and the company has already submitted its compliance report response in December 2082 BS (early 2026 AD). Following closely, United Mewakhola Hydropower, with Citizens Capital as its issue manager, is set to bring 12,300,000 shares to the market. Similarly, Mewa Developers Limited, through Himalayan Capital, is preparing for a mega IPO of 11,200,000 shares. Another highly anticipated entrant in this sector is Raghuganga Hydropower Limited, which submitted its compliance application for 15,000,000 shares via NIC Asia Capital on May 21, 2083 BS (early June 2026 AD). These substantial offerings from the energy sector alone are expected to significantly increase the supply of shares in the primary market. The manufacturing sector is also poised to make a significant splash, with several prominent companies planning to issue shares at premium prices, creating considerable excitement in the market. Jagdamba Steels Limited, a leading name, is advancing its process to issue 20,070,000 IPO shares at NPR 330 per share, which includes a premium over the par value. This offering represents 30% of the company's total capital, with the total issue amount projected to exceed NPR 6.62 billion. Similarly, Saurya Cement Industries Limited is set to introduce 15,981,500 shares to the market at a premium price of NPR 333 per share, constituting 35% of its total capital. The cement and rebar industries, in particular, appear to be experiencing an IPO surge. Maruti Cements Limited has initiated its process through Nabil Investment Banking to issue 11,600,000 shares at a premium price of NPR 426 per share. Riddhi Siddhi Cement Limited has appointed NIMB Ace Capital as its issue manager for 12,171,500 shares, offered at a premium of NPR 246 per share, representing 27% of its total capital. Furthermore, Ambe Steels Limited is in the final stages of preparing to issue 11,192,727 shares at a premium of NPR 303. These premium IPOs from established industrial players are expected to attract significant investor interest, reflecting their strong fundamentals and growth prospects. Beyond the premium offerings, three other manufacturing companies are also in the pipeline, planning to issue shares to the general public at the par value of NPR 100. Mahashakti Cement Limited has already submitted its report through Laxmi Sunrise Capital in April 2083 BS (early May 2026 AD) for the issuance of over 17,850,000 shares. Shubhashree Agni Cement Udyog, via Machhapuchhre Capital, is preparing to launch an IPO of 20,210,000 shares. Similarly, Godawari Steel Limited, with Sanima Capital as its issue manager, is set to issue 10,500,000 shares, having already received its compliance report on April 29, 2083 BS (mid-May 2026 AD). These par-value IPOs offer an accessible entry point for a broader range of investors, further diversifying the primary market's offerings. The investment and communication sectors are also joining this wave of mega IPOs. Shivam Holdings Limited, a significant player in the investment landscape, is preparing to issue 11,600,000 IPO shares at a premium price of NPR 210 through Siddhartha Capital. Concurrently, Dish Media Network Limited (DishHome), a prominent television and internet service provider, has submitted its compliance report to SEBON for an IPO of 19,705,970 shares, managed by Prabhu Capital and Kumari Capital. The participation of such diverse and established companies underscores the growing maturity and breadth of Nepal's capital market. Currently, with only a few hundred thousand IPO shares typically available, the majority of the over 2 million applicants are left empty-handed. However, market analysts believe that the approval and issuance of these large-scale IPOs will not only significantly increase market capitalization but also create an environment where general investors, long frustrated by repeated rejections, can confidently expect to receive share allocations. These mega IPOs are anticipated to inject fresh enthusiasm into the primary market and significantly boost investor morale. However, a critical challenge remains. While new companies and larger share volumes are entering the market, the absence of a robust institutional investor base, foreign institutional investors, and non-resident Nepalis (NRNs) capable of absorbing large blocks of shares continues to hinder the market's ability to reach higher valuation points. This structural issue requires urgent attention. The newly appointed SEBON Chairman, Gopal Bhatt, is expected to prioritize these concerns to ensure the sustainable growth and stability of the Nepali capital market. A balanced approach that encourages both retail participation and institutional depth will be crucial for unlocking the full potential of NEPSE.
Thulo Khola Hydropower Initiates 22.5 MW Production, Unveils Ambitious IPO and Future Project Roadmap
Thulo Khola Hydropower Limited (TKHL) has successfully commenced commercial operation of its 22.5-megawatt Upper Thulo Khola 'A' Hydropower Project, marking a significant milestone in Nepal's energy sector. Situated in the remote, rugged terrain of Myagdi district, this project not only adds crucial capacity to the national grid but also sets the stage for the company's ambitious growth trajectory, including an upcoming Initial Public Offering (IPO) and plans for further project development. The journey of Thulo Khola Hydropower Limited began on Baisakh 10, 2074 BS (April 23, 2017), as a private entity. Recognizing the importance of broader public participation and aiming for enhanced transparency, the company transitioned to a public limited company on Magh 23, 2079 BS (February 6, 2023). This strategic move was more than a legal formality; it underscored TKHL's commitment to becoming a robust and transparent player in Nepal's burgeoning energy landscape. The Upper Thulo Khola 'A' project, initially conceived as a 15 MW facility, saw its capacity upgraded to 22.5 MW in the fiscal year 2078/79 BS (2021/22). This expansion reflected the company's growing confidence and technical capabilities. The project's headworks are located at a challenging altitude of 3,000 meters above sea level, with the powerhouse situated between 2,400 and 2,500 meters. Operating in such high-altitude, difficult terrain presented formidable engineering and logistical challenges, likened by the company to "chewing iron chickpeas." Construction officially commenced in Baisakh 2080 BS (April 2023), but the mountainous environment proved to be a significant hurdle. Geographical remoteness, unstable soil conditions, persistent landslide risks, and extreme weather patterns, including heavy rainfall and snow, repeatedly disrupted construction activities. These natural adversities necessitated a change in the substation route, leading to an increase in the project's initial cost estimates. Originally projected at NPR 4.46 billion, the total project cost escalated to NPR 5.145 billion. Nabin Silwal, Chief Operating Officer of Thulo Khola Hydropower, elaborated on these challenges: "Initially, we estimated the cost at NPR 4.46 billion, but it has now risen to NPR 5.145 billion. The primary reason for this increase is the challenging geography. Both the powerhouse and intake areas faced significant landslide risks. The soil was loose, and heavy rain and snow made work extremely difficult. We had to construct numerous safety structures, which added to the cost. Furthermore, the transmission line route had to be altered, contributing to the budget overrun." Despite these challenges, the company's financial foundation remained robust. A consortium of banks, led by Citizens Bank International Limited and including Sunrise Bank Limited, Machhapuchhre Bank Limited, and Agricultural Development Bank Limited, provided a substantial loan facility of NPR 3.695 billion, ensuring the project's successful completion. As of the end of Falgun 2081 BS (mid-March 2024), the company had completed all major civil and hydro-mechanical works. While the initial target for commercial electricity production faced some delays due to unforeseen circumstances, primarily the late supply of electro-mechanical equipment and interruptions caused by national elections, TKHL is now targeting to commence full commercial operation by the end of Ashar 2081 BS (mid-July 2024). The project has also developed its own 6-kilometer transmission line to facilitate power evacuation to the Rahughat Substation. Under the astute leadership of Chairman Narendra Ballav Pant, supported by an experienced board of directors including Shweta Adhikari, Dhiraj Karki, Baburaja Chakradhar, and Rajesh Kaji Shrestha, Thulo Khola Hydropower is poised for future expansion. The company's total paid-up capital stands at NPR 2.75 billion, with promoters contributing NPR 1.925 billion. The remaining NPR 825 million is slated to be raised from the general public through an IPO, which the company aims to launch within the next 7-8 months. Looking ahead, Thulo Khola Hydropower is not content with merely completing one project. Its future roadmap is even more ambitious. The company plans to leverage the invaluable experience gained from the Upper Thulo Khola 'A' project to develop another significant venture: the 36.6 MW Dhorpatan Run-of-River Hydropower Project. This strategy of investment diversification is expected to establish TKHL as a major multi-project operator in Nepal's energy sector. In conclusion, Thulo Khola Hydropower Limited is not just generating electricity; it is actively contributing to the economic prosperity of remote regions like Myagdi. With its successful project completion, robust financial backing, experienced leadership, and clear vision for future expansion, including a forthcoming IPO, the company presents a compelling opportunity for investors and stands as a vital contributor to Nepal's energy independence and development goals.
Mount Everest Power Development IPO: Last Day for General Public Application
Today, Ashar 8 (June 22, 2024), marks the final opportunity for the general public to apply for the Initial Public Offering (IPO) of Mount Everest Power Development Limited. This crucial deadline follows the successful allocation of shares to project-affected local residents and Nepalis in foreign employment, signaling the conclusion of the company's public issuance. Mount Everest Power Development Limited had previously secured approval to issue 2,580,000 ordinary shares, constituting 30% of its NPR 860 million issued capital, amounting to a total of NPR 258 million. The issuance was strategically phased to ensure broad and inclusive participation. In the initial phase, 860,000 shares were successfully distributed to residents within the areas impacted by the Dudhkunda Khola Hydropower Project, underscoring the company's commitment to local community engagement. Concurrently, 172,000 shares were allocated to Nepalis residing abroad, offering them a direct pathway to invest in their home country's burgeoning energy sector. Additionally, the company reserved and allotted 34,400 shares for its dedicated employees and 86,000 shares for various collective investment schemes (mutual funds), fostering a diversified ownership base. The current offering, which culminates today, represents the second and final phase, specifically targeting general investors. A total of 1,427,600 ordinary shares are available for subscription at a par value of NPR 100 per share, totaling NPR 142.76 million. Investors are required to apply for a minimum of 10 shares, with a maximum application ceiling of 10,000 shares. This structured approach aims to facilitate equitable participation across a broad spectrum of retail investors. Regarding the company's financial standing and risk profile, CARE Ratings Nepal has assigned Mount Everest Power Development Limited a 'CARENP Double B Plus Issuer' rating for its IPO. This rating indicates a moderate level of risk concerning the company's capacity to fulfill its financial obligations. While not the highest possible rating, it provides prospective investors with a transparent assessment of the company's creditworthiness and operational stability, aligning with standard practices for public offerings in the Nepalese market. Mount Everest Power Development Limited is the operator of the 12 MW Dudhkunda Khola Hydropower Project. The total estimated cost for the development and operation of this project is approximately NPR 2.369 billion (NPR 2,369,320,042), which translates to a per-megawatt cost of around NPR 197.44 million (NPR 197,443,336.83). The project benefits from a substantial remaining electricity generation license period of 28 years and 9 months, ensuring long-term operational continuity and robust revenue generation potential. From an investment perspective, the project demonstrates an attractive simple payback period of 6.40 years and a discounted payback period of 8.94 years. These figures suggest a relatively favorable return on investment, particularly for a hydropower venture that typically entails significant upfront capital expenditure and extended gestation periods. NIMB Ace Capital Limited is serving as the official issue manager and sales manager for this IPO. Prospective investors have multiple convenient channels for submitting their applications. They can utilize the C-ASBA system through banks and financial institutions authorized by the Nepal Securities Board, including their designated branch offices. Furthermore, for enhanced accessibility and convenience, applications can also be submitted online via the Mero Share software, a service provided by CDSC (Clearing and Depository Company Limited). The Nepalese hydropower sector continues to be a focal point of investor interest, driven by the nation's immense hydroelectric potential and the government's strategic emphasis on sustainable energy development. IPOs from hydropower companies frequently experience oversubscription, reflecting strong public confidence in the sector's long-term growth trajectory and its pivotal role in Nepal's economic progress. As Mount Everest Power Development Limited concludes its IPO, it represents another significant stride in expanding Nepal's energy infrastructure and offers a valuable new investment opportunity for the public. Investors are strongly advised to complete their applications promptly to capitalize on this limited-time offering.
Reliance Jio Platforms Poised for India's Largest IPO, Signaling a New Era in Tech Listings
Billionaire Mukesh Ambani's Reliance Industries is set to make history with the impending Initial Public Offering (IPO) of its telecom unit, Jio Platforms. Analysts are hailing this as potentially one of the largest public listings in India's history, a move that could redefine the landscape of the country's capital markets and technology sector. Ambani, addressing Reliance's Annual General Meeting, confirmed that the company's board has already approved the draft red herring prospectus for the IPO, signaling a significant step forward for the highly anticipated listing. Following the board's approval, media reports indicate that Jio, currently India's largest telecommunications service provider, aims to raise approximately $4 billion (equivalent to £3.02 billion) through this IPO. With a colossal customer base exceeding 500 million, Jio's market entry is being closely watched by investors. The listing's performance will offer crucial insights into market sentiment towards new IPOs, especially given the volatility observed in the Indian stock market over recent months. Ambani articulated the profound significance of this move, stating, "Jio's proposed listing will prove to the world that India can build technology companies with global scale, capability, and value." This statement underscores the ambition behind Jio Platforms, positioning it not just as a domestic giant but as a global technology powerhouse. Established in 2016, Jio revolutionized India's telecommunications sector by introducing ultra-affordable mobile data plans, rapidly accumulating millions of users. Beyond its initial disruption in telecom, the company has strategically expanded its business into cutting-edge domains such as cloud computing, enterprise services, and Artificial Intelligence (AI). This diversification highlights Jio's long-term vision to evolve into a comprehensive digital ecosystem provider. Further cementing its strategic ambitions, Jio and its competitor Bharti Airtel last year entered into separate agreements with Elon Musk's SpaceX to introduce Starlink internet services in India. The announcement of Jio's IPO comes after years of anticipation, with Ambani having previously hinted last year that the company would be listed within the first half of 2026. Unlike the secondary market, where investors trade already listed shares, an IPO marks the first time a privately owned company offers its shares to the public, thereby entering the stock market. The timing of Jio's IPO announcement, coming just a day after the National Stock Exchange (NSE) submitted its necessary documents for market entry, has injected fresh enthusiasm into the Indian capital market. While official details regarding the IPO's issue price and the company's total valuation are yet to be released, estimates suggest that the NSE's IPO alone could raise over $3 billion. Both Jio and NSE's listings are poised to be among India's largest IPOs in recent years, potentially rivaling the historic $3.3 billion share sale by Hyundai Motor India two years ago. Investors and analysts are keenly observing Jio's IPO, believing that its success could break the recent slump in new company listings and reignite excitement in the Indian IPO market. In recent years, Jio has aggressively expanded its business scope beyond telecommunications, venturing rapidly into Artificial Intelligence (AI) and digital infrastructure. Earlier this month, tech giant Meta announced its intention to lease capacity in an AI-enabled data center being constructed by Reliance in the western Indian state of Gujarat, which will have a total capacity of 168 megawatts. This agreement builds upon a partnership initiated in 2020 when Meta invested $5.7 billion in Jio Platforms. Since then, both companies have strengthened their collaboration, including initiatives to make Meta's open-source AI models more accessible to Indian businesses and software developers. Global investment bank Jefferies estimated Jio's total market valuation at approximately $180 billion last November, positioning it as one of the world's most valuable telecommunications companies. This IPO also represents a historic moment for the broader Reliance group, as it marks the first major public offering from any of its sister companies since Reliance Petroleum was listed on the stock market in 2006. The Jio Platforms IPO is not merely a financial transaction; it is a testament to India's burgeoning digital economy and its potential to foster globally competitive technology enterprises.
Yambaling Hydropower (YMHL) Set for NEPSE Debut with Opening Range of Rs. 100-300
The Nepal Stock Exchange (NEPSE) is set to welcome another entrant to its hydropower sector with the listing of Yambaling Hydropower Limited. A total of 7,000,000 shares of the company have been formally listed, paving the way for public trading under the ticker symbol 'YMHL'. This listing encompasses the entire paid-up capital of the company, including shares held by the promoters and the recent allocation to the general public through its Initial Public Offering (IPO). For investors eagerly awaiting its secondary market debut, NEPSE has set the opening price range for the first transaction between Rs. 100 and Rs. 300. This range is a critical benchmark, as it is determined based on the company's audited net worth per share. The first trade of YMHL must occur within this price band, after which market forces of supply and demand will dictate its price in subsequent trading sessions. Trading is expected to commence from Ashad 08, 2083, contingent upon the formal signing of the listing and trading agreement between Yambaling Hydropower and NEPSE. This final administrative step is standard procedure before a newly listed stock becomes available for trading on the NEPSE platform. The company's journey to the public market culminated in its IPO, which was open from Baishakh 16th to Baishakh 22nd, 2083. During this period, Yambaling Hydropower issued 2,800,000 units of shares to the general public at a par value of Rs. 100 per share. This public issue represents 40% of the company's total issued capital of NPR 700 million. The remaining 60%, amounting to 4,200,000 shares, is held by the company's promoters. This share structure is important for investors to note, as promoter shares are subject to a lock-in period, typically three years from the commencement of public trading, which ensures the long-term commitment of the founding members to the company's performance and governance. The addition of Yambaling Hydropower to the NEPSE board adds another option for investors keen on the energy sector, which remains a cornerstone of Nepal's economic development strategy. Hydropower stocks are often viewed with optimism due to the nation's vast river resources and the government's push for energy independence. However, investors should also conduct their due diligence, considering factors such as the company's project status, power purchase agreements (PPA), operational efficiency, and hydrological risks. As YMHL prepares to begin its life as a publicly-traded entity, its performance will be closely watched by the market, providing a fresh barometer for investor sentiment towards the hydropower sector.