SEBON Changes IPO Approval Process as Himal Parvat Hydropower Gets Green Light After 170 Days

SEBON Changes IPO Approval Process in Nepal

Nepal’s primary share market has finally seen movement after a prolonged period of uncertainty, with the Securities Board of Nepal (SEBON) approving the IPO of Himal Parvat Hydropower Limited after a gap of around 170 days.

The development also marks a significant change in Nepal's IPO approval process, as the authority to approve IPO and right-share issues has reportedly shifted from the SEBON chairperson to the Board of Directors.

October 5, 2026, the new arrangement was introduced after months of delays in approving new public issues.

Himal Parvat Hydropower Gets IPO Approval

Under the new approval mechanism, the SEBON Board meeting held on Ashwin 16 approved the proposed IPO of Himal Parvat Hydropower Limited for the general public.

The company plans to issue 5.915 million shares worth Rs. 591.5 million. Citizens Capital Limited has been appointed as the issue and sales manager.

Himal Parvat Hydropower had submitted its IPO application to SEBON on Mangsir 5, 2081. The company has completed its 5.5 MW Sagu Khola-1 and 20 MW Sagu Khola hydropower projects in Dolakha and has been generating electricity since 2082.

The company's net worth per share is also reported to be above Rs. 100, which was among the factors supporting the approval.

Why Was the IPO Approval Process Changed?

Previously, IPO, right-share and debenture approvals were generally handled through the authority of the SEBON chairperson.

Under the new arrangement, the approval authority has been moved to the SEBON Board of Directors.

SEBON Assistant Spokesperson Tolakanta Neupane confirmed that IPO and right-share approvals are now decided by the Board. The formal publication of an approval is also linked to completion of the required securities registration fee process.

This change could have an important impact on the Nepal primary share market, particularly because several companies have been waiting for approval.

170-Day Gap Raises Questions for Nepal's IPO Market

The approval of Himal Parvat Hydropower comes after a long period without new IPO approvals.

Before this latest development, the last approvals mentioned in the report were for Everest Color, Sarbottam Paints and Mount Everest Power on Baisakh 2, 2083.

The prolonged approval gap had created uncertainty among companies waiting in the IPO pipeline as well as investors looking for new investment opportunities in Nepal's primary market.

For investors, the key question now is whether the new Board-level approval mechanism will accelerate the processing of the remaining IPO applications.

IPO Pipeline Remains Important for Investors

Nepal's IPO market has become an important investment channel for retail investors. However, an IPO approval does not automatically mean that an investment is attractive.

Investors should examine:

• Company's financial performance
• Earnings per share (EPS)
• Net worth per share
• Debt level
• Project completion status
• Expected cash flow
• Management quality
• IPO price and valuation
• Future earnings potential
• Industry and regulatory risks

Understanding these factors is especially important for investors who want to move beyond simply applying for every IPO.

For structured learning, investors can explore Sarbaguna's Share Market Training in Nepal and learn how fundamental and technical analysis can be used in investment decisions.

What Does the New SEBON System Mean for Investors?

The shift from chairperson-level approval to Board-level approval may provide a more institutional decision-making structure.

However, the effectiveness of the new system will ultimately depend on how efficiently the Board processes applications and communicates decisions to the market.

A transparent and predictable IPO approval process can benefit:

• IPO applicants
• Existing shareholders
• Retail investors
• Merchant bankers
• The broader Nepal stock market
• Capital formation in Nepal

Investors should therefore monitor official SEBON announcements rather than relying solely on market rumors or social-media speculation.

IPO Approval Is Not the Same as IPO Opening

One important distinction for new investors is that IPO approval and IPO opening are not necessarily the same event.

After regulatory approval, companies may still need to complete additional procedural requirements before the IPO becomes available for public applications.

Therefore, investors should check the official issue notice, opening date, closing date, number of shares, minimum application quantity and other terms before applying.

Learn Nepal Stock Market and Trading From the Basics

The changing IPO approval environment shows why investors need more than basic knowledge of how to fill out a C-ASBA application.

Understanding fundamental analysis, technical analysis, risk management, portfolio management, market psychology and NEPSE trends can help investors make more informed decisions.

If you want to build practical knowledge of Nepal's share market, you can explore Sarbaguna's Complete Share Market Learning Course in Nepal.

For investors interested in global financial markets, Sarbaguna also offers a Forex Trading Course in Nepal, covering important concepts related to forex markets, technical analysis, trading psychology and risk management.

Final Takeaway

The approval of Himal Parvat Hydropower's IPO after a 170-day gap represents an important development for Nepal's primary market.

More importantly, the reported transfer of IPO and right-share approval authority to the SEBON Board changes the way public issues are approved in Nepal.

The next major test will be whether the new mechanism can process the large IPO pipeline more efficiently while maintaining transparency, regulatory scrutiny and investor protection.

For investors, the lesson remains simple: an IPO should not be judged only by its popularity. Understanding the company's fundamentals, valuation, risks and future prospects is essential before investing.

For Nepal stock market training, investment education, technical analysis and Forex Trading Course in Nepal, contact Deep Thapa on WhatsApp: 9849290806.

Disclaimer: This article is for educational and informational purposes only and should not be considered investment advice. Investors should conduct their own research and review official regulatory and company disclosures before making investment decisions.