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Three Companies, Including Two Hydros and a Paint Manufacturer, Poised for NEPSE Listing Post-IPO

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Three Companies, Including Two Hydros and a Paint Manufacturer, Poised for NEPSE Listing Post-IPO

The Nepalese capital market is abuzz with anticipation as three companies – Kalanga Hydro Limited, Sanigad Hydro Limited, and Everest Color Limited – are in the final stages of listing their shares on the Nepal Stock Exchange (NEPSE) for secondary market trading. This development follows the successful allocation of their Initial Public Offerings (IPOs) to the general public, marking a crucial step towards enhancing market liquidity and offering new investment avenues for the investor community.

Before shares can be traded on the secondary market, companies must complete several regulatory formalities, a key one being the dematerialization agreement with CDS and Clearing Limited (CDSC). This agreement ensures that shares are held in electronic form, facilitating seamless and secure trading. All three companies have now successfully completed this vital step, paving the way for their imminent listing on NEPSE.

Key Milestones in the Listing Process:

  • Kalanga Hydro Limited: Having completed its IPO allocation on Jestha 27, the company finalized its dematerialization agreement with CDSC on Ashar 5. This hydropower developer is set to list shares worth NPR 1.4 billion, with a ownership structure of 65% held by promoters and 35% by the public. Kalanga Hydro operates the 15.33-megawatt Kalangagad Hydropower Project in Bajhang district, which has already commenced commercial production, contributing to Nepal's growing energy sector.

  • Everest Color Limited: This paint manufacturing company, which allocated its IPO on Ashar 4, signed its agreement with CDSC on Ashar 9. Everest Color is preparing to list shares valued at NPR 300 million. Its ownership is structured with 73.67% held by promoters and 26.33% by the public. With over 14 years of experience, Everest Color has established itself in the market by producing and distributing high-quality paints, often in collaboration with multinational companies, offering a diversified investment opportunity beyond the dominant hydropower sector.

  • Sanigad Hydro Limited: Following its IPO allocation on Ashar 1, Sanigad Hydro also completed its CDSC agreement on Ashar 5. This company is poised to list a substantial NPR 2.85 billion worth of shares, with a 70% promoter and 30% public ownership split. Sanigad Hydro operates a larger 38.46-megawatt hydropower project, also located in Bajhang district, which has been in commercial operation since Falgun 6, 2079 (February 18, 2023), indicating a stable revenue stream.

With the CDSC agreements now in place, the next procedural step for these companies involves formalizing their listing agreements with NEPSE. This final stage will enable their shares to be officially traded on the secondary market, allowing investors to buy and sell them freely. The entry of these new companies, particularly the two hydropower projects, underscores the continued growth and investment potential within Nepal's energy sector, while Everest Color offers a valuable diversification into the manufacturing industry. This influx of new listings is expected to add depth and vibrancy to the NEPSE, providing investors with more choices and potentially increasing overall market activity and liquidity.