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NewsGet Ready with NPR 100,000: 77 Companies to Launch IPOs

Get Ready with NPR 100,000: 77 Companies to Launch IPOs

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Kathmandu: Nepal’s capital market regulator, the Securities Board of Nepal (SEBON), has finally appointed a new chairman, Santosh Narayan Shrestha, after an 11-month-long vacancy. With his appointment, the long-pending Initial Public Offerings (IPOs) from 77 companies are set to hit the market soon. This marks a significant moment for investors eagerly waiting to invest in these shares.

According to SEBON, these IPOs will collectively raise NPR 49.10 billion through the issuance of 335.6 million shares. To subscribe to all these IPOs, the general public will need approximately NPR 100,000, making it a notable financial opportunity.

Status of IPOs in the Pipeline

The hydropower sector dominates the pipeline with 37 companies set to issue NPR 15.73 billion worth of shares. Investors will need NPR 37,000 to subscribe to shares from this sector alone. Following hydropower, the manufacturing and processing sector ranks second, with 15 companies planning to raise NPR 22.68 billion. For this sector, a minimum of NPR 32,586 will be required to apply for shares.

Other sectors like hospitality, microfinance, and insurance are also gearing up for IPOs. The hotel and tourism sector includes 7 companies with NPR 3.31 billion worth of shares, while micro-insurance companies have plans to issue 6.75 million shares worth NPR 675 million. Meanwhile, 10 companies from other miscellaneous sectors are collectively preparing IPOs worth NPR 3.32 billion.

Premium and Book-Building IPOs

Nine companies are preparing to issue shares at a premium price using the book-building method. For instance, Shivam Holdings Limited plans to issue shares at NPR 210 per share. While most IPOs will have a face value of NPR 100, these premium-priced offerings present a unique opportunity for investors willing to pay a higher price for potentially higher returns.

A Chance for Simultaneous IPOs

SEBON spokesperson Navaraj Adhikari indicated that multiple IPOs might be launched simultaneously if companies complete their required documentation on time. β€œIf the documents are ready, SEBON will approve IPOs without delay,” he said, highlighting the board’s commitment to expediting the process under the new chairman’s leadership.

Steps to Apply for IPOs

To apply for an IPO, investors need to ensure they have a bank account and a Demat account with a merchant bank. Nepal currently has 31 merchant banks, many of which offer online services for account opening. Using the β€œMero Share” app, investors can conveniently apply for IPOs without visiting physical locations.

High Demand for Capital

Most companies aim to raise capital promptly, as IPOs are a critical tool for funding their growth. With hydropower projects, manufacturing units, and insurance firms among the frontrunners, the influx of IPOs signals a thriving capital market in Nepal, encouraging increased participation from retail investors.

Investment Opportunities for All

The current IPO pipeline is expected to cater to investors across all segments. For example, low-priced IPOs like Nepal Broadcasting Channel’s shares at NPR 50 provide an affordable option, while high-value book-building shares attract seasoned investors. This diversity ensures investment opportunities for both small and large-scale investors.

Conclusion: A Market on the Rise

With 77 companies ready to issue IPOs, the Nepalese stock market is on the brink of a massive surge in activity. This is an excellent time for investors to prepare themselves financially and strategically to participate in the offerings. The new SEBON leadership is expected to bring efficiency and dynamism, paving the way for robust market growth. Prepare your NPR 100,000 and get ready to seize the opportunities!

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