The ongoing debate in Nepal’s hydropower sector is heating up again as the Securities Board of Nepal (SEBON) prepares to take a bold step. SEBON is set to halt the approval process for Initial Public Offerings (IPOs) of hydropower companies that have not yet begun generating electricity.
This move comes as a response to growing concerns about companies raising funds from the public without showing any progress in project execution. According to SEBON, many hydropower firms are launching IPOs and collecting money from investors while their power plants remain incomplete or inactive.
No power, no IPO; SEBON new message
By planning to halt IPO approvals for such inactive companies, SEBON is sending a clear message: if you’re not generating electricity, you shouldn’t be raising money from the public.
This decision is not just about blocking IPOs, it’s about building transparency and trust in Nepal’s hydropower sector. It also puts pressure on companies to complete their work before asking the public for financial support.
This decision is expected to shake up the hydropower industry and pressure companies to speed up construction and deliver on their promises.
