Upcoming Hydropower IPO in Nepal | Upcoming IPO in Nepal

There are dozen hydropower companies going to issue Initial Public Offering (IPO). These all companies had given the application to the Securities Board of Nepal ( SEBON) . The face value of the primary shares is Rs: 100. After the approval of SEBON the shares will be issued to the public. There is the rule that the company have to issue the IPO to the general public within two month after the approval of SEBON

Likewise there are 20 companies whose IPO are coming to the market. Out of 20 companies 12 of them are hydropower companies, 4 of them are microfinance, 2 of them are insurances and 2 are from other sectors. Many of companies are in the pre-issue process so they will issued IPO to the Project affected local people and general public. According to the securities board of Nepal SEBON 20 companies will issue 5 crore 23 lakh 57 thousand units worth Rupees 5 Arab 90 crore 77 lakh and fifty thousand.

Now in share market, 40 companies are listed. After this fiscal year the number of listed companies will increased to 60 in NEPSE. In Nepal there is many hydropower companies are in construction phase which are issuing IPO to the general public. The hydropower sector has 8.9% area in total listed companies. When the number of hydro companies listed more then the market share of hydro companies will also increased. After that the investors will have the multi investment choices in their portfolio management.

The hydropower companies will have to allocate 10% of total shares to the project affected local people after that the companies will issued to the general public. According to the new rule the hydropower companies including manufacturing companies will have to issue minimum 10 percent shares to the general public. From the long time, the banking sector influence the share market. There was 85-85% of share of total listed companies were banking, finance and insurance sector 4-5 years ago. The share market was influenced by the rule and law of Nepal Rastra Bank and Bima Samiti. But in nowadays the banking and finance sector is decreasing and the hydropower sector is increasing day by day. The percentage of Banking and insurance sector share is 69% in last fiscal year end.

The companies which have given application to the SEBON to issue IPO shares are given below

Company	Number of Share (units)
Sayapatri Hydropower	9 lakh
Upper Solu Hydro Electric Company	33 lakh 7 thousand 5 hundred
Upper Hawakhola Hydropower	20 lakh
Mollung Hydropwer	35 lakh 31 thousand
River Falls Power	34 lakh 30 thousand
Three Star Hydropower	12 lakh 31 thousand 2 hundred and 50
Rapti Hydro Power	29 lakh 41 thousand 4 hundred and 10
Dordi Khola Hydropower	29 lakh 51 thousand 9 hundered and 29
Binda Basani Hydropower Company	25 Lakh
Himalayan Hydropower	22 Lakh 50 thousand
Bafeli Hydropower	36 lakh 55 thousand 9 hundred and 40
Green Venture Limited Company	62 lakh and 50 thousand

 

All the above companies are hydropower companies which have given the application to the securities board of Nepal (SEBON)  meanwhile Board had sent comment to the Himalayan, baeli, bindabasani and green venture company.

 The name of other companies comes under microfinance, insurance and other sector which had given application to SEBON are as follows

• ·      Jalpa Samudayik Laghubitta Bittiya Sanstha Limited
• ·      Rastra utthan Laghubitta Bittiya Sanstha Limited
• ·      Upakar Laghubitta Bittiya Sanstham Limited
• ·      NISDO Samridha Laghubitta Bittiya Sanstha Limited
• ·      Reliable Life Insurance Company Limited
• ·      IME life Insurance Compnay Limited
• ·      Dish Media Network

Note: All the data were collected from the website of SEBON and NEPSE.