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.