Investor Interest Grows in Hydropower as Lock-In Periods End: See Which Companies Hold How Much Investment ?

In recent trading sessions, hydropower stocks in Nepal have shown consistent growth, defying the overall fluctuations in the NEPSE index. Investors are increasingly moving away from previously less attractive “low-cap” companies and focusing on hydropower firms backed by strong institutional investments, especially those nearing the end of their lock-in periods.

Institutional Investments Driving Hydropower Share Price Rally

Shares of prominent hydropower companies like Radhi Vidyut, Sanima Mai Hydropower, Butwal Power Company, Universal Power Company, Chilime Hydropower, Ngadi Group Power, and Arun Kabeli Power have steadily increased. These companies have completed or are approaching the end of their three-year lock-in periods following their IPOs, allowing founders and early investors to sell shares freely, which is boosting market activity.

Lock-In Period Expiry Fuels Market Optimism

According to regulatory norms in Nepal, founders’ shares in companies—excluding banks, financial institutions, and insurance companies—can be sold freely after three years from the IPO allotment date. This rule has led to a surge in market interest as many investment groups holding significant stakes in hydropower firms approach lock-in expiry. Anticipation of these institutional shareholders selling shares to realize profits is driving stock prices higher.

Hydropower Stocks Approaching Lock-In Period Expiry

• River Falls Power: Lock-in ended on Jestha 8; Mayakhola Hydropower holds over 167,000 shares. Recently traded at NPR 432.13 after hitting the circuit limit.
• Dordi Khola Hydropower: Issued a 1:1 rights share; Radhi Vidyut holds over 1.64 million shares. Lock-in ends on Asar 7, latest price NPR 391.27.
• Himalayan Hydropower: Lock-in expires on Asar 27; Sanima Bank owns 566,000+ shares.
• Upper Hewakhola Hydropower: Lock-in ends on Asar 31; People’s Hydropower holds 500,000 shares. Trading prices recently around NPR 539-569.
• Rapti Hydro & General Construction: Lock-in ends Saun 8; Universal Power, Radhi Vidyut, and CIDB Holdings hold significant shares. Price remains above NPR 300.

Other Key Hydropower Companies with Institutional Holdings

• Shwetganga Hydropower: Sanima Mai, Sanima Bank, and NRN Infrastructure hold shares; lock-in ends Saun 17.
• Trishuli Hydropower: Nepal Telecom owns over 7.4 million shares; lock-in ends Falgun 16, 2082 BS.
• Mayakhola Hydropower: Prabhu Insurance holds 460,000 shares; lock-in ends Magh 24, 2082 BS.
• Asian Hydropower: Samling Power holds 50,000 shares; lock-in ends Falgun 16, 2082 BS.
• Sanima Middle Tamor Hydropower: Jointly held by Sanima Mai, NRN Infrastructure, and Sanima Bank; lock-in ends Chaitra 7, 2082 BS. Shares trade above NPR 500.
• Sagarmatha Hydropower: Applied for 1:1 rights issue; Ngadi Group Power holds 1.4 million shares; lock-in ends Chaitra 16, 2082 BS.
• Mailung Khola Hydropower: Expected lock-in expiry in 2026; institutional investors include Sanima Mai, Sanima Bank, and NRN.
• Vision Lumbini Energy: Institutional shareholders include HIDCL, Sain Resunga Development Bank, Sanima Reliance Life Insurance, and others. Lock-in ends Poush 4, 2083 BS.

Why Are Investors Interested in Hydropower Stocks Now?

The combination of institutional backing and upcoming lock-in expiries is creating positive momentum for hydropower shares. Investors are optimistic about potential profit-taking by institutions, making these stocks attractive for both short-term gains and long-term investment strategies.