Nowadays, The craze of the IPO in public can be easily seen. People are just curious to know about the new upcoming IPOs in Nepal. As of right now, over 18 lakh people are applying for the IPO.
The amount of people applying for the IPO has nearly increased by 5 times compared to the previous year.
We can feel the buzz and the excitement about the IPO in public. The number of Demat account holders has been increasing rapidly, which just shows how people are interested and involved in the share market, especially the younger generation.
According to the report, over 60% of the investors are youngsters. You can know more about the upcoming IPOs in Nepal by visiting SEBON’s website.
Upcoming IPO’S in Nepal
We saw different companies last year which brought IPO and did well in the market. Regardless of the pandemic,2020 turned out to be a pretty great year for IPOs. Nearly 30 companies issued their IPO, and people were excited about the upcoming IPOs in Nepal.
While the market was closed for about 90 days, it didn’t change people’s perception about the IPO and share market. People are applying for IPO now and Definitely will apply in the future. So, These are the Upcoming IPO’s in Nepal.
Manakamana Smart Laghubitta Bittiya Sanstha Limited (MSLBSL)
Manakamana Smart Laghubitta Bittiya Sanstha Limited was established to provide loans, help the poor, and encourage savings.
The company is registered with the company register under the company act 2063. The company was founded on 2074/06/25.
On 2074/10/02, it received a Microfinance Institution license from Nepal Rastra Bank to start carrying out financial services.
From the Bhairawa branch, Rupandehi, the financial operation was started on 2074/11/06. The founder and CEO of the company is Mr. Dev Singh Bista. This microfinance has opened branches in ten districts of Nepal.
NMB Capital has been appointed as its issue manager. It has got an ICRA rating of BB- which is an average rating. The company getting this rating are considered to have a moderate risk of default in financial services.
Usually, Microfinance in Nepal does well in the share market. Their market price is normally over 1500, and they provide good returns to their investors.
So, we can expect the same result from this company too. The company will do great in the long run. Investors will greatly benefit from this company in the long run. So, we advise you to apply for the IPO of this company.
Jeevan Bikas Laghubitta Bittiye Sanstha Limited (JBLBSL)
JBLSBL is a microfinance institution established with the sole motive of eradicating poverty in Nepal. It was formed by merging Jeevan Bikas, Garibi Nyinikaran, and Solve Laghubitta on Sep 7, 2020.
The firm was changed from NGO to microfinance and had been providing financial services since 3rd March 2008 by acquiring a license from Nepal Rastra Bank as a “D” class financial institution.
The company is considered very reliable and supportive of microfinance in the Eastern region, and the main goal of the organization is to build a poverty-free Nepal.
It has been continuously working to uplift the living standard of the public along with providing loans to poor people while encouraging them in saving, insurance, and remittance too. Its head office is located at Morang.
This company is issuing 19,77,300 units of Shares. NMB Capital has been appointed as the issue manager. The organization decided to issue the IPO in their second-quarter meeting, which was held on 9/29/2077.
According to the company’s Balance Sheet, the authorized share capital of the company is 1 Arba while Paid-up capital is 41.6 crore, and Issued share capital is 50 crore.
ICRA Nepal has assigned the issuer rating of BBB- which indicates a moderate degree of safety. So, the Investor should not worry about their loss, and it will be worth applying for the IPO
. Investors can expect a higher return in the future, and the price of the share will increase certainly. You can earn money quickly by selling the IPO in the secondary market.
Sayapatri Hydropower Limited (SPHL)
Sayapatri Hydropower Limited IPO is one of the upcoming IPOs in Nepal. It will be listed in the Hydropower sector in NEPSE. SEBON has added its proposed IPO to the pipeline. The company has invested in the construction of a 2.5 MW Daram Khola ‘A’ hydropower project in the Baglung district.
The chairman of the firm is Dr. Badri Kc. NIBL Ace Capital Is the issue manager by Sayapatri hydropower Limited. You can visit the issue manager’s site to know further about the IPO.
SPHL will be issuing 9 lakh units of shares. The company has proposed to issue a 10% IPO of its issued capital to local people of the project affected area while 20% of the shares to the general public. However the authorized capital of the company is 50 crore, and the Issued capital is 30 crore. Sayapatri Hydropower is issuing 3 lakh units of shares to project-affected locals and 6 lakh units to the general public.
The company has been doing really well in the past. It is providing its dividend in time and has very high potential in the future. Investors should really invest in this IPO. We can expect a safe and good return in the future. So, we should definitely apply for the IPO of this company.
Reliance Spinning Mills Limited (RSML)
Reliance Spinning Mills Limited is a public limited company established in 1994 AD. It is a high-tech spinning plant with machinery from world-renowned textile machinery manufacturers while being the largest spinning mill in Nepal. Mr. Shashi Kanta Agrawal and Mr. Pawan Kumar Golyan are the founders of the Firm.
The company has two factories: Unit ‘A’ located in khanar, Sunsari while Unit ‘B’ is located in Duhabi, Sunsari, Nepal. It manufactures polyesters, Viscose Acrylic Yarn of international stand and export them worldwide but mainly in India and Turkey. Around 4300 people work in this company.
RSML will be issuing IPO via book building method which is unusual in Nepal and the company has proposed to issue 146000 units of shares. According to reports, the price of the IPO hasn’t been fixed yet but it will be determined via the book-building process.
Global IME Capital Ltd is the issue manager according to the company. The enterprise has decided to issue 40% of the share to the institutional investors while 60% share to the general public which is 584000 units and 876000 units respectively.
It will be a new experience for the public. Many people have no idea about the book-building process. We suggest you research the company and its fundamentals. It is a great company however there may be some flaws as the company may not provide profit forever.
lt will give a higher return but due to the book building, small investors may hesitate to apply as the price of the IPO will be comparatively higher than normal IPOs.
Sarbottam Cement Limited (SCL)
Sarbottam Cement Limited is Nepal’s one and only manufacturer producing the best Blaine, premium quality OPC & PSC cement using the complete range of most advanced European Technology. It is the only cement manufacturer in Nepal acquiring the largest amount of foreign investment.
They are the first company in Nepal to issue an IPO through a Book Building System. The price of the IPO has not been fixed yet but it is expected to be somewhere around 750. Investors will be excited and interested to apply for the IPO.
Why is SCL Issuing Through Book Building Method?
The price of the IPO will most likely be Rs 750 as it is going to make history because it is the first company in Nepal to issue its IPO through a book-building system. Some of the reasons behind Sarbottam Cement issuing their IPO through book building are:
- With less paid-up capital, SCL can produce more cement.
- The company produces 3000 metric tons of cement daily.
- It produces 2 crore sacks of cement annually.
- They provide bonus shares, more profit, etc., and have enough reserve.
SCL will issue 24 lakh units which is 40% of the total IPO to the institutional investors. The employees of the company will get 3 lakhs units while the general public will receive 2 lakh fifty thousand units. Only a lucky 50 thousand applicants will receive the IPO and the remaining will go empty-handed.
ICRA Nepal has given a BBB+ rating to the company which means above average. Firms getting this type of ratings are comparatively less risky. People have been hesitant to apply as the company has a huge debt but the company has already announced that it will pay the debt through the IPO money. As per the chairman, 40% of the loan will be paid through the money collected from the IPO.
Within the 3 months of issue, the company has proposed to provide a 10% bonus share and 25% cash dividend. The company expects to increase Earning Per Share by 100. After one year, the annual return will increase by 75% which is a massive increment for any company.
The price of the IPO will be higher so we can expect fewer applicants and the company is really good and the fundamentals are sound so I would recommend you to apply for the IPO of this company. It will provide a huge dividend in the future.
These are the upcoming IPOs in Nepal. It is most likely that these companies will issue this year. Just make sure to apply for every one of them. They are some of the best companies moving forward so it will give a higher return if you hold it for a long time.
As Warren Buffet said, “Hold is Gold”. Large investors may try to manipulate or do their things in the market but you just need to have patience and sell it at the right time. You must have got enough knowledge about the upcoming IPOs in Nepal.
So, make sure to apply it. It will be really good for beginners too. As we can say Investing is the seventh wonder of the world. Feel free to leave comments, we will try to reach you all. Have a good day.