Have you ever wondered what is the quickest way to check IPO results in Nepal? Well, everybody wants to check IPO results without any hindrance. So, today I am going to show you how you can check your IPO result In Nepal easily.
As we can see the ongoing craze about the share market in the world and Nepal too. People are curious to know more and more about the stock market and Upcoming IPO’s in Nepal especially the young generation. The number of investors has been increasing day by day, which shows how people are interested in the share market.
People will rather invest in the stock market than saving their money in banks to fixed deposits. According to the report from RSS, People who are depositing their money in banks are earning a maximum of 10% in fixed deposits, while people investing in the stock market are earning up to 18% in return.
However, Investing in the stock market is not as easy as it seems. You have to take a high risk to get a high reward; not everyone investing in the share market has profited. We can hear a lot of news about the various companies going totally bankrupt, Investor completely losing their money. The ones with the patience and the proper fundamental knowledge will surely get profited from it, while others will just be losing their money.
What is IPO?
IPO means Initial Public offering. Before you enter the share market, you should know about the IPO. It is the process by which the private company sells its share to the general public to be considered a public company. In simple terms, whenever a company wants to expand or wants to become a large company, they issue a certain amount of shares to the public to collect enough capital. It is called IPO.
The number of people applying for an IPO in Nepal is increasing rapidly. As of right now, there are over 30 lakh Demat account holders in Nepal, while nearly 16 lakh people are applying for the IPO. In Nepal, the cost of a share in an IPO is Rs 100 unless it’s a book-building process.
Youth seems to be more interested in the stock market. If a company issues IPO in Nepal, it will get oversubscribed within a day. The number of people applying for an IPO is increasing day by day. People don’t seem to care about the company and its history. They just blindly apply for it, which is not good for the long term.
How Does IPO Works?
An Initial Public Offering (IPO) is the process of a private company becoming a public company by issuing its shares to the general public. Shareholders can buy and sell those stocks at their will, and the company will have no control over them.
It is not that easy process as it looks. The company should go through different phases to get the approval from respective securities board. I will give you a simple example of it. If ABC Company wants to issue an IPO, then it has to go through steps depending upon the country. It gives the application to the particular securities board, in Nepal, it is the Securities bond of Nepal (SEBON).
SEBON is the governing board that regulates the securities around the market under the Security Act, 2006. Its major functions are:
- Issues licenses to operate the stock exchanges.
- It is the sole board that registers the company’s securities.
- providing suggestions to the government about the development of the capital market.
- The license of the stockbroker, fund manager, dealer, etc. is issued by SEBON and many more.
SEBON will analyze the strength of the company. The fundamental of the particular firm should be really strong in order to get approved. Only those companies can issue the IPO that have been making profits over the years. If a certain institution meets the requirements of the SEBON, then it will get approved. After that, the company will decide the issue date.
Investors are required to apply before the deadline and if a total number of shares aren’t sold, then the company will reissue shares or extend the application deadline. Though, Nowadays in Nepal, IPO will get oversubscribed within 2 days. According to SEBON’s rule, the price per share of IPO shouldn’t exceed more than Rs 100.
After the company receives the application, they start to distribute shares. Depending upon the number of applicants and the number of shares issued, the issue manager allots the shares. Assuming that, applicants are less compared to the shares issued then they will get more numbers of shares depending upon how much they have applied for.
If the number of shares issued is less and applicants are high then those shares are allotted via the lottery system. Only the lucky applicants will get the shares while the remaining will go empty-handed. Allotted shares are directly deposited in their Demat account. Those IPO can only be traded after it is listed on Nepal Stock Exchange (NEPSE).
How to Check IPO Result in Nepal
Previously, it was really easy to check IPO results in Nepal. There were several websites like Merolagani, Sharesansar, Nepalipaisa etc. But now according to the new rule of CDSC, it says that applicants can check IPO results in Nepal through only 3 websites. They are:
By visiting Iporesult.cdsc.com.np
Mero share is the most used website to check IPO result in Nepal. You can check the results of the IPO from anywhere across the globe. All sorts of stock are done through Meroshare. Overloading is the only major problem with this site. It is really difficult to check IPO due to the heavy traffic on this site. This may be due to bad hosting technical issues. Hopefully, they may fix this issue soon.
Due to this problem, The CDSC team has launched another website to check IPO results in Nepal. Now, you can easily check the IPO with iporesult.cdsc.com.np. You can just click the link and check your IPO result without worrying about system overload or server down.
You can see in the above figure, Just type your boid number and you can easily see your IPO result. If your share is allotted then it will show allotted but if it’s not then it will say it is not allotted.
Issuing Company Website
Another way to check IPO result in Nepal is by visiting the particular company which is issuing shares. This rule was made by CDSC recently. People have criticized and question CDSC about this decision as our private information is being exposed to this particular website.
To check IPO results you just have to visit issuing company website and you can find the IPO allotment option. Click on it and just type your BOID number provided by the bank or broker. If you are lucky, then you will get allotted and if you are not, I guess you have to try another one.
Issue manager website
Don’t get confused with Issuing company and the Issue manager. They are two separate parties. The issuing company issues shares whereas the Issue manager has got the responsibility of distributing IPO to the general public.
You just have to visit the issue manager website and type your BOID number there to check your IPO result. Issue managers may vary according to the IPO issuing companies. So, you have to first know about the issue manager in order to check IPO results. For example, SBI MERCHANT was appointed as the issue manager for Mahila Laghu Bittiye Sanstha IPO.
Is it Really Worth it to Invest in IPO?
It is an easy way to invest with less risk. Sometimes, IPO can be a little overrated as companies will issue fewer shares in order to increase the stock price which can be misleading. People are applying for IPO with little to no knowledge.
Investing in IPO is the first step to enter the share market. People want to earn quick money so they sell their IPO soon or such investors have no patience at all. It is good to invest in IPO by analyzing its fundamentals rather than blindly following others’ advice. So, yes it will be worth it to invest in IPO.
How Can We Make Money From IPO?
Firstly, you should make a Demat account of all of your family members which increases your chances of getting an IPO. Then apply for the IPO from every account you have got. There are higher chances of your IPO getting allotted if you apply from many accounts and vice versa.
Let’s say if you have applied from 6 accounts and 4 of them have been allotted, then it is a good ratio compared to applying by an individual only. When it gets listed in NEPSE, look at the right time and sell it. In this way, you can earn really well from the IPO too with low risks.
Can We Sell Our IPO Immediately?
No, you can’t sell your IPO immediately. When your IPO is allotted, it normally takes the stock 2-3 weeks to get listed in NEPSE. After that, it can be bought and sold in the secondary market. The opening price range can be expected between the net worth per share of the company to three times its net worth per share. Sometimes, it may open higher or lower depending upon the market condition.
Depending upon demand and supply in the market, the shares are traded. If you want to sell your IPO you must visit the broker office and sell it. They will directly deposit money into your account after he takes his part in the commission.
What are the Advantages of IPO?
Whenever the company wants to go public by issuing the IPO, they raise huge capital in a short time from a huge number of investors. They can use that capital to further business expansion, growth, and infrastructure. The company will get motivated as the public has believed and invested in its company.
As there is less risk in IPO, people are really interested in the share market which definitely helps the country’s economy. It helps the company to go public and it helps the companies to extract new talent. People are more encouraged and involved in investing due to the IPO which is really beneficial to both firms and the general public.
What are the Disadvantages of IPO?
One simple disadvantage about the company going public is it takes a lot of time and expenses. It takes normally about 6-9 months for an IPO process. Company management is highly focused on it so it may disrupt the company business or their production.
After going public, the company now has to answer shareholders about their growth, profit, etc. A public company is supposed to do good, so it may feel pressured and may make poor decisions while sacrificing its long-term goals. The oversupply of the company shares also hamper its development.
So, folks, this is how you can check IPO result in Nepal.IPO is a good way of beginning your share market journey. In my view, everyone should apply for an IPO. There is a very low chance that your investment will go to a loss. It has low risk and high reward but that does mean you should follow other advice in the share market. You have to study and analyze the company properly in which you are going to invest.
As warren buffet has said, “Buy right, Hold tight.”. You should always buy the share of the good company and hold it so that it can easily give you profit in the future. Learn to ignore your emotion. In the end, I just want to say that every people should be involved in the share market. Rather than saving our money in the bank, we should invest in different stocks and beat the inflation rate.
Investing is the best way of earning income. Investors like Warren Buffet, Elon Musk have earned a lot of money from the share market. You just need to need to have the right knowledge about the market and patience too. Investing in the right stock will definitely give a great return in the future.
Just sell it when it’s the right time. There will always be risks in investing, but it will be really worth it to take the risk. So, that’s all for today. Feel free to leave comments. We will try to reach you as quickly as we can.