Unlocking Liquidity: A Deep Dive into NEPSE's Lowest Public Float Companies and Upcoming Promoter Share Releases

The Nepal Stock Exchange (NEPSE) is a dynamic market, and understanding the nuances of share distribution is crucial for investors. A recent analysis has shed light on a critical aspect of market liquidity: the public float of recently listed companies and the impending expiry of promoter share lock-in periods. This review, encompassing 52 companies whose promoter lock-in periods are yet to conclude, offers valuable insights for investors navigating the NEPSE landscape. Companies that completed their IPOs more than three years ago and have already seen their promoter lock-in periods expire were intentionally excluded from this specific analysis, ensuring a focus on the most relevant upcoming liquidity events.

The analysis specifically targets shares that constitute the public float, which includes those issued to the general public, foreign migrant workers, and mutual funds. Shares allocated to project-affected individuals and employees were not factored into this calculation, providing a clearer picture of freely tradable shares. The findings reveal a significant disparity in public float percentages among these companies, with some exhibiting remarkably low numbers, which can have profound implications for market liquidity and price discovery.

Leading the list of companies with the smallest public float is Swastik Laghubitta Bittiya Sanstha Limited (SWASTIK). With only 231,000 public shares, representing a mere 40% of its total 577,500 listed shares, SWASTIK stands out. Its shares were allotted on August 28, 2025, meaning the promoter lock-in period is set to expire on August 28, 2028. While the mutual fund lock-in period concluded earlier on February 28, 2026, the significant block of promoter shares remains restricted. Financially, SWASTIK reported a robust EPS of Rs. 21.11 and a net profit of Rs. 1.21 crore in the fourth quarter of FY 2082/83, with its latest traded price at Rs. 1,904. It's important to note that for BFIs and microfinance institutions, employee/staff shares might become tradable after their three-year lock-in, but promoter shares are subject to stricter regulatory restrictions, often extending beyond the initial three years.

Following closely is Everest Colour Limited (ECL), which has 790,000 public shares, accounting for 26.33% of its 3 million listed shares. Allotted on June 18, 2026, ECL's promoter lock-in period will expire on June 18, 2029, with the mutual fund lock-in ending on December 18, 2026. The company posted an EPS of Rs. 7.38 and a Q4 net profit of Rs. 2.21 crore, with a recent trading price of Rs. 1,400.

Sarvottam Paints Industries Limited (SAPIL) features with 850,000 public shares, making up 25% of its 3.4 million listed shares. Its shares were allotted on June 25, 2026, and the promoter lock-in period is slated to end on June 25, 2029. The mutual fund lock-in period for SAPIL concluded on December 25, 2026. SAPIL reported an EPS of Rs. 6.60 and a Q4 net profit of Rs. 1.71 crore, trading at Rs. 1,394.80.

Among the energy sector, Him Star Urja Company Limited (HIMSTAR) has 1.119 million public shares, representing 30% of its 3.73 million listed shares. Allotted on July 16, 2025, its promoter lock-in period will expire on July 16, 2028. The mutual fund lock-in period ended on January 16, 2026. Despite a Q4 net loss of Rs. 11.80 crore and an EPS of Rs. 1.15, its latest traded price was Rs. 659.90. Jhapa Energy Limited (JHAPA) also shows a 25% public float with 950,475 shares out of 3.8 million listed. Allotted on September 24, 2025, its promoter lock-in expires on September 24, 2028. JHAPA reported an EPS of Rs. 3.86 and a Q4 net profit of Rs. 1.46 crore, with a recent price of Rs. 1,013.

Interestingly, Mabilung Energy Limited (MABEL), while on this list, boasts the highest public share percentage among the top 10, with 1.89 million public shares accounting for 49% of its 3.86 million listed shares. Allotted on August 24, 2025, its promoter lock-in ends on August 24, 2028. MABEL, however, reported a negative EPS of Rs. 1.16 and a Q4 net loss of Rs. 0.45 crore, trading at Rs. 567.30.

Chirkhwa Hydro Power Limited (CKHL) has 1.2 million public shares, representing 30% of its 4 million listed shares. Its shares were allotted on November 2, 2023, with the promoter lock-in period expiring relatively sooner on November 2, 2026. CKHL reported the highest Q4 net profit among these companies at Rs. 5.30 crore and an EPS of Rs. 13.25, with a recent price of Rs. 575.

Appolo Hydropower Limited (APHL) holds 1.41 million public shares, making up 30% of its 4.7 million listed shares. Allotted on April 24, 2026, its promoter lock-in will end on April 24, 2029. APHL posted a negative EPS of Rs. 6.65 and a Q4 net loss of Rs. 1.93 crore, trading at Rs. 689.

Rounding out the list are Salapa Bikas Bank Limited (SABBL) and Kalinchowk Hydropower Limited (KHPL). SABBL has 1.724 million public shares (33% of 5.22 million listed), with its promoter lock-in expiring on January 9, 2029. It reported an EPS of Rs. 1.46 and a Q4 net profit of Rs. 1.95 crore, trading at Rs. 870. KHPL, with 1.375 million public shares (25% of 5.5 million listed), sees its promoter lock-in expire on April 20, 2029. It reported an EPS of Rs. 1.10 and a Q4 net profit of Rs. 0.61 crore, trading at Rs. 760.

The size of a company's public float is a critical determinant of a stock's liquidity. A small public float often translates to lower trading volumes and potentially higher price volatility, as even minor buying or selling pressure can significantly impact the share price. For investors, this means that while a low float might sometimes lead to rapid price appreciation due to scarcity, it also carries the risk of difficulty in exiting positions without affecting the market price.

Furthermore, the impending expiry of promoter lock-in periods presents a significant event for these stocks. When a substantial block of promoter shares becomes eligible for trading, it can lead to an increase in the supply of shares in the market. This increased supply, depending on the demand, could exert downward pressure on the stock price. Savvy investors will closely monitor these dates, assessing the potential impact on market dynamics.

However, it is crucial to emphasize that a low public float alone does not dictate whether a stock is overvalued or undervalued. A holistic investment approach requires investors to delve deeper into a company's fundamentals. This includes a thorough examination of its earnings per share (EPS), overall financial health, valuation metrics, and future growth prospects. The financial figures cited in this analysis are based on the Q4 results of FY 2082/83, and the data was compiled on August 30, 2026, using the Last Traded Price (LTP) of August 27, 2026. By combining an understanding of market structure with fundamental analysis, investors can make more informed decisions and capitalize on opportunities within the NEPSE market.