80 firms aim to raise Rs 49.48bn thru IPOs

The number of companies awaiting approval from the Securities Board of Nepal (Sebon) to issue public shares has reached 80. Additionally, six listed companies have applied for Sebon's approval to launch follow-on public offerings (FPOs). According to Sebon, the 80 companies have proposed to issue a combined 341.91m units of primary shares, aiming to raise Rs 49.48bn from the market. The approval process for IPO applications was stalled for nearly a year due to the absence of a chairperson at Sebon. The position had remained vacant since the first week of January when Ramesh Prasad Hamal completed his tenure. The government finally filled the vacancy on Nov 25 by appointing Santosh Narayan Shrestha as the new chair of Sebon. The highest number of companies preparing to float their public issue are from the hydropower group. According to Sebon, 40 hydropower companies are preparing to issue 163.6m units of shares to raise Rs 16.41bn from the general public. 

Sanima Hydropower Ltd, Him Star Urja Company Ltd, Bhujung Hydropower Ltd, Darma Khola Hydro Energy Ltd, Sanvi Energy Ltd and Beni Hydropower Ltd are among the hydropower companies that have sought Sebon’s nod to float their public shares. IPOs of Yamling Hydropower Ltd, Mabilung Hydropower Ltd, Solu Hydropower Ltd, Taksar Pikhwa Khola Hydropower Ltd, Bikash Hydropower Company, and Kalinchowk Hydropower Ltd are also in the IPO pipeline. Seven companies—five hotels and two cable car companies—from the hotel and tourism sector have applied to the Sebon to go public to raise Rs 3.31bn from the market. They are preparing to float 5.36m units of ordinary shares. IPos of Apex Hospitality Ltd, Hotel Forest Inn Ltd, Arcade Holdings Ltd, Akama Hotel Ltd and Thamel Plaza Hotel and Suites Ltd, and two cable car companies—Annapurna Cable Car and Bandipur Cable Car and Tourism, are in the pipeline.

Three companies from the investment group are floating 5.67m units of public shares. Varun Investment Ltd, Seed Energy Ltd and Shivam Holdings Ltd have sought Sebon’s nod to go public. According to Sebon, 15 companies from the manufacturing and processing have sought permission to raise Rs 22.68bn by issuing 91.67m units of public shares. Accord Pharmaceuticals Ltd, SY Panel Nepal Ltd, Surya Cement Industries Ltd, Maruti Cements Ltd, Smart Doors Ltd, Palpa Cement Industries Ltd and Om Megashree Pharmaceuticals Ltd are preparing to issue IPOs soon.
Laxmi Technoplast Ltd, Shree Distillery Ltd, Sopan Pharmaceuticals Ltd, Bhugarbha Cement Ltd, Riddhi Siddhi Cement Ltd, Sagar Distillery Ltd and Ambe Steels Ltd are also in the process of launching their IPOs.