Even though Nepal’s stock market has been falling for months, interest in IPOs (Initial Public Offerings) is rising like never before. From students and housewives to working professionals, everyone now wants a small share of ownership through IPOs. This growing craze is changing the country’s investment culture.
The pause and restart of IPOs
For nearly a year, no new companies entered the market because the Securities Board of Nepal (SEBON) had no chairman. That long silence made investors frustrated. But once a new chairman was appointed, things started moving again. Several companies received approval to issue IPOs, bringing fresh energy back to the market.
IPOs selling out in minutes
Whenever a company opens its IPO for four days, it gets sold out within minutes. The demand is so high that most IPOs are oversubscribed on the very first day. Due to this, most investors don’t get shares even after applying. To keep it fair, IPOs are now distributed through a lucky draw system, where each selected investor gets at least 10 units.
Bikas Hydropower leads the rush
Bikas Hydropower recently issued over 44 lakh shares. Within the first day, the IPO was already oversubscribed, with more than four lakh people applying. By the final day, over 21 lakh people had applied for more than two crore shares but only around three lakh lucky ones received 10 units each.
More companies joining in
Following Bikas Hydropower, many new names are entering the market. Some of the latest approved companies include Daramkhola Hydro Energy, Mabilung Energy, Swastik Laghubitta, Bungal Hydro, Bandipur Cable Car, Jhapa Energy, Sagar Distillery, Shreenagar Agritech, and SY Panel.
In this fiscal year alone, three manufacturing companies have already received IPO approval. Among them, Sagar Distillery, Srinagar Agritech, and SY Panel have seen massive public interest. Sagar Distillery alone attracted over 23 lakh applications.
Why the craze continues
Even though the secondary market remains slow and uncertain, the primary market is full of excitement. People see IPOs as a safer and easier way to invest. The limited number of shares and lucky draw system haven’t reduced the hype—each new IPO gets thousands of fresh applications.
It shows that while the market index might fall, investor hope in Nepal’s IPOs is still climbing.
