IPO abbreviates for Initial Public Offerings. You may be curious to know its meaning. Let’s make it simple for you with this short article on IPO in Nepal.
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Introduction to IPO in Nepal
The IPO means the offerings made to the public by the Financial institutions in their Initial stage. These financial institutions offer their shares in the form of an IPO to generate capital for business. It is these IPOs that get traded in the form of shares in the later stage. The Securities Board of Nepal (SEBON) is responsible for all the authoritative actions in the context of shares and issues.
Now that you know what an IPO means, thus it’s time to get in the process. Let’s have a look at the steps to follow for an IPO purchase and the Institutions involved.
Advantages of IPOs in Nepal
Except in those rare case scenarios where a business goes bankrupt for whatsoever reasons, investing in IPOs is always profitable. IPOs can deliver huge revenues as compared to the initial investments made. Sometimes you achieve a dividend or right shares worth more than your investments and, that’s amazing. However, the volatile nature of the stock market is always to be kept in mind.
- IPOs are considered the most reliable capital investment opportunity in Nepal.
- Investment in these preliminary shares in Nepal is a comparatively faster approach to getting higher returns.
- You can sell the shares as soon as it appears on the secondary market, Sharesansar in the case of Nepal.
Other Similar Financial assets
- Right Share
- Mutual Funds
- Fixed Deposits
Institutions involved in Nepal Shares
Also known as the Primary Market, Mero share allows you to buy IPOs and keep track of their growth only. However, for all other tasks, you would require a secondary market or a broker for further processing. The platform offers you details like issue manager, units of issues, prices, and other details.
Share Sansar is the place to sell you IPOs in addition to purchasing shares and bonds other than IPOs. It is known as the secondary market where you need to get access with a connection from a broker.
A broker is a representative or agency that connects the IPO holder to the secondary market. You get access to the Sharesansar on opening a broker account with one of the many brokers. You can opt for the one that has an office near your location. Here is the list of brokers to name a few;
- Agrawal Securities Pvt. Limited
- ABC Securities Pvt. Limited
- Arun Securities Pvt. Limited
- Kumari Securities Pvt. Limited
- Naasa Securities Co. Ltd.
- Online Securities Pvt.Ltd
- Midas Stock Broking Company Pvt. Limited
- Nepal Stock House Pvt. Limited
- Pragyan Securities Pvt. Limited
- and many more
Steps to follow for buying an IPO
Before looking into the process, you must consider these factors for buying an IPO. Also, It is necessary to have a basic background check on these companies before applying for their IPOs.
- Company profile to justify the prices for the commodity
- Possibilities of growth for the company
- Possible competitors of the company whose IPO is in consideration
Now let’s go through the steps to purchase an IPO.
- Select an IPO that you wish to buy.
- Log in to your Mero share Account with your credentials and Depository participant or bank code.
- Go to My ASBA.
- Select the tab Apply for Issue and click on Apply beside the IPO to buy.
- Fill in the basic details like Bank Account Number, Bank details, the quantity of IPO to apply for, and the CRN number (Customer Relationship Number) provided by the bank where you open a DMAT account.
- Click on Apply to finish buying the issues.
- This IPO application process usually takes around 15 days to get allotted and another 10-15 days to show on your account.
Some latest IPOs in Nepal
These are the new IPOs in Nepal that got circulated to the public recently in 2080.
- Indigo Paints
- Mahila Laghubitta
- Nepal Infrastructure Bank
- Jyoti Life Insurance
- Greenlife Hydropower Limited
- Sarbottam Cement
- Ru Ru Jalbidhyut Pariyojana Ltd.
- Super Madi hydropower
- Maya Khola hydropower
- Molung hydropower company
- CEDB Hydropower Development Company Limited
- Sanima Large Cap Fund
- Reliable life insurance
- Chandragiri Hills Limited
- Prabhu Life Insurance Limited
Upcoming IPOs in Nepal 2023
With the beginning of 2023/2080, over 15 businesses are on the verge of offering IPOs. While some of these upcoming IPO has allotted, some are still pending. Here is the list of upcoming IPOs in Nepal
|Citizen Life Insurance Company Limited||75,00,000 Units|
|Reliance Spinning Mills Limited||14,60,000 Units|
|Dish Media Network Limited (DishHome)||23,80,000 Units|
|Buddha Bhumi Nepal Hydro Power Co. Ltd||12,00,000 Units|
|Sahas Urja Ltd||70,00,000 Units|
|Sayapatri Hydropower Limited||9,00,000 Units|
|Upper Solu Hydro Electric Company Limited||33,07,500 Units|
|Jeevan Bikash Laghubitta Bittiya Sanstha Ltd||19,77,300 Units|
|Madhya Bhotekoshi Jalvidyut Co. Ltd||15,00,000 Units|
|Balephi Hydropower Limited(BAHL)||32,55,000 Units|
|NCell Axiata Limited||N/A|
IPO results check 2080
The results for the allotment of Issues don’t appear first on your Mero share account. You would require a BOID or DMAT number and select the IPO from the list to get results. To check your IPO results fast and quickly, here are the possible options;
Share sansar IPO result
Share Sansar IPO results are one of the quickest result options. Sharesansar IPO holds the data for all the available IPOs and Shares on their database.
IPO result CDSC
IPO result CDSC shows the application results for applied kittas of IPO as soon as the details get public. All the latest IPO results in 2080 were available on this site with ease.
Bizpati IPO result
Bizpati IPO results can be used to check the allotment Results for 2023 and beyond.
Mero share IPO result
You can check the results of your IPO Kittas allotment on your Mero share account. Go through My ASBA–Application reports–Reports to see your IPO result.
All the companies that offer IPO display their allotment results on their site. You can visit their site and land in the IPO results section, and check the results.
Scene of IPOs in Nepal 2023(2080)
IPOs in Nepal have always been luring new customers as it has a high potential for economic benefit. A couple of years ago IPO distributors had to increase the time limits for the sale of remaining IPOs. But in 2023, Nepal and the IPO seekers have achieved a situation where the issues get oversubscribed on the opening day of the offering on Meroshare.
The latest IPO results have staggered the financial wave across the nation. People in Nepal are getting crazy about IPOs and their results. Nepal has witnessed exponential growth in IPO applicants and share prices.
The recent Mahila Laghubitta Bittiya Sanstha issue result showed how a Rs 100 IPO turned into Rs 5000 worth of shares in the secondary market, yielding a 50 times profit. IPO result Mahila Laghubitta was probably the only one with such a huge return. However, another recent Chandragiri Hills IPO result also took the nation by storm as it turned to a value of Rs 2000 in a short time after being issued to the general public.
Jyoti life insurance resulted in about Rs 800 this week, while the Greenlife hydropower IPO results in around Rs 400 on 16th May 2021. Another highly anticipated NIFRA IPO results were satisfactory at around Rs 500. Hydropower company offers massive units of shares, however, they are known to yield lower profits compared to other sectors. Kalinchowk Darshan is also about to issue offerings soon.
Also, the rise in COVID-19 cases in Nepal has put people on hold in their homes. It alleviates the use of digital technology to make use of free time and gain profits at the same time with IPO applications in Nepal.
To sum up the scene of IPO in Nepal in 2023, please go through the process of IPO application and company profile to justify the issue price assigned to the commodity. Also, check IPO results on the sites mentioned here for a riskless environment. Have a safe IPO rendezvous.