Five Companies Apply for IPO Approval in Nepal: How Many Shares Will Each Issue?

Five companies have applied to the Securities Board of Nepal (SEBON) for permission to issue Initial Public Offerings (IPOs), adding new opportunities to Nepal’s primary share market. The applicants include one hotel company and four companies associated with the hydropower and energy sector.

All five companies have proposed issuing shares at a face value of Rs. 100 per share. However, investors should note that submitting an IPO application does not guarantee approval or confirm the final public issue date.

Five Companies Seeking IPO Approval in Nepal

The five companies that submitted IPO applications to SEBON during Asoj 2083 are Hotel Siraichuli Limited, Sasha Engineering Hydropower Limited, Peace Energy Company Limited, Unitech Hydropower Company Limited, and Moonlight Hydropower Company Limited.

Here is a breakdown of their proposed share issues, estimated issue values, and appointed issue managers.

The proposed issues total 18,011,426 shares, equivalent to approximately Rs. 180.11 crore at the stated face value. These figures represent the companies’ proposed offerings, not confirmed approvals or completed fundraising.

1. Hotel Siraichuli Limited IPO

Hotel Siraichuli Limited has applied to issue 1.5 million shares to the general public at a face value of Rs. 100 per share.

If approved and issued as proposed, the offering would have a total value of Rs. 15 crore. Nabil Investment Banking Limited has been appointed as the issue manager.

Investors interested in the hospitality sector should review the company's financial statements, profitability, debt obligations, business model, and growth prospects before making an investment decision.

2. Sasha Engineering Hydropower Limited IPO

Sasha Engineering Hydropower Limited has proposed issuing 3.1 million shares to local residents and the general public. At Rs. 100 per share, the proposed issue is valued at Rs. 31 crore.

NIMB Ace Capital Limited is the appointed issue manager.

Before investing in a hydropower IPO, prospective applicants should examine the project's construction and operating status, power purchase agreement, debt exposure, expected electricity generation, and financial performance.

3. Peace Energy Company Limited IPO

Peace Energy Company Limited has applied to issue 3.2 million shares to local residents and the general public.

At the proposed face value of Rs. 100 per share, the issue would raise Rs. 32 crore if completed as planned. Machhapuchhre Capital Limited has been appointed as the issue manager.

Investors should evaluate the company's project development progress, financial position, funding requirements, and regulatory approvals before applying for its shares.

4. Unitech Hydropower Company Limited IPO

Unitech Hydropower Company Limited has requested permission to issue 1.97 million shares to local residents and the general public.

The proposed issue has a total face value of Rs. 19.70 crore. Laxmi Sunrise Capital Limited will manage the offering.

Potential investors should assess the company's project risks, financial statements, outstanding loans, revenue outlook, and ability to generate sustainable cash flow.

5. Moonlight Hydropower Company Limited IPO

Moonlight Hydropower Company Limited has proposed the largest share offering among these five applicants, with 9,241,426 shares planned for local residents and the general public.

At a face value of Rs. 100 per share, the proposed issue is worth Rs. 92.41 crore. Laxmi Sunrise Capital Limited has been appointed as the issue manager.

Given the size of the proposed offering, investors should carefully examine the company's capital structure, project progress, debt obligations, operating prospects, and use of IPO proceeds before deciding whether to apply.

What Is the Current Status of These IPO Applications?

The five companies have submitted applications to SEBON seeking permission to issue their shares. Regulatory approval is required before they can proceed with the IPO process.

Investors should distinguish between three stages:

• IPO application submitted: The company has requested regulatory permission.
• IPO approved: SEBON has granted permission for the proposed issue, subject to the applicable conditions.
• IPO open for subscription: The offering has reached the public application stage, with an announced opening date and application details.

An application alone does not mean that an IPO is open for investors. Applicants should check official SEBON announcements and the relevant issue manager's notices for updated information.

How Should Investors Evaluate Upcoming IPOs in Nepal?

The arrival of new IPO applications can attract investors seeking opportunities in Nepal's primary market. However, the number of shares offered or the popularity of a company does not automatically make an IPO a good investment.

Consider the following factors before applying:

1. Financial performance: Review revenue, earnings, net worth, debt, and cash flow.
2. Business and project risks: Examine the company's sector, competitive position, operating status, and growth potential.
3. Use of IPO proceeds: Understand whether funds will support project completion, debt repayment, expansion, or other purposes.
4. Regulatory status: Confirm whether SEBON has approved the offering and whether applications are open.
5. Long-term valuation: Assess the company's prospects rather than assuming that every newly listed share will rise in price.

For additional learning, explore share market training in Nepal and investment training for beginners.

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Understanding IPOs is only one part of successful investing. Investors can also benefit from learning fundamental analysis, technical analysis, risk management, market psychology, and portfolio management.

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Disclaimer: This article is for educational and informational purposes only. IPO applications, proposed issue sizes, and regulatory status may change. Verify the latest official notices before investing. This article does not constitute investment advice or a recommendation to apply for any IPO.

Frequently Asked Questions (FAQ)

1. How many companies have applied for IPO approval in Nepal?

Five companies—Hotel Siraichuli Limited, Sasha Engineering Hydropower Limited, Peace Energy Company Limited, Unitech Hydropower Company Limited, and Moonlight Hydropower Company Limited—have applied to SEBON for IPO approval during Asoj 2083.

2. What is the total proposed value of these five IPOs?

The five companies have proposed issuing a combined 18,011,426 shares at a face value of Rs. 100 per share, representing approximately Rs. 180.11 crore.

3. Which company has proposed the largest IPO?

Moonlight Hydropower Company Limited has proposed the largest offering among the five applicants, with 9,241,426 shares valued at approximately Rs. 92.41 crore at face value.

4. Which company has proposed the smallest IPO?

Hotel Siraichuli Limited has proposed the smallest offering by value among the five companies, with 1.5 million shares worth Rs. 15 crore at face value.

5. Are these IPOs open for public applications?

An IPO application submitted to SEBON does not mean the issue is open. Investors should check official regulatory announcements and issue-manager notices for approval status and subscription dates.

6. What is the proposed IPO price of these companies?

All five companies have proposed issuing their shares at a face value of Rs. 100 per share. The final terms must be confirmed through the approved issue documents.

7. How can investors check upcoming IPOs in Nepal?

Investors can monitor SEBON notices, official issue-manager announcements, and reliable Nepal stock market news sources for approval updates, prospectuses, opening dates, and application instructions.

8. Where can beginners learn about IPOs and share market investing in Nepal?

Beginners can study IPO procedures, fundamental analysis, technical analysis, portfolio management, and risk management through structured share market education and practical learning resources at Sarbaguna.