Growing Interest in IPOs Indicates Rising Market Charm

The number of applicants for initial public offerings (IPOs) in Nepal has been steadily rising, reflecting growing public interest in the primary market.

The growing interest follows an increasing number of companies going public. According to available data, in the past six months (August 2025 to February 2026), 11 companies offered IPOs compared to eight companies in the previous six months (February 2025 to July 2025, marking an increase of over 37%.

According to data from CDS and Clearing Limited (CDSC), several recent IPOs saw strong oversubscription.

Jhapa Energy Limited attracted 18,68,141 applications for 473,330 units, oversubscribed by 42.99 times. The allotment was concluded in September 2025. 

Bandipur Cable Car and Tourism Limited received 21,31,070 applications for 43,41,080 units, oversubscribed by 5.87 times. The IPO allotment took place in September 2025.

Bungal Hydro Limited garnered 21,75,888 applications for 29,05,000 units. The issue was oversubscribed by over 11 times with the allotment concluded in November 2025.

Similarly, SY Panel Nepal Limited concluded its IPO allotment in November 2025, oversubscribed by over 6.04 times with 21,89,773 applications.

Salpa Bikas Bank Limited completed IPO allotment in January 2026, oversubscribed by around 19.4 times with approximately 23 lakh applications.

Similarly, Solu Hydropower Limited attracted 25,70,422 applicants for 82,00,000 units, oversubscribed by 3.86 times. The allotment was concluded in January 2026.

Chartered accountant and stock market analyst Manish Aryal said the increasing interest in IPOs has contributed to the overall market growth. “New market participants support the overall growth of the market. However, investors should understand that IPO shares do not always guarantee returns and they may trade below face value,” he said.

He attributed the surge in IPO participation to increasing financial literacy, citing examples of brokerage firms and banks increasing awareness about the primary market.

Similarly, growing awareness among the young generation about financial independency is a key factor, he pointed out.

“Lately, IPOs have been seen as an effectively way to earn money. The young generation is increasingly attracted to the stock market and IPOs are often their entry point,” he said.

Many IPOs have generated huge listing gains with none trading below face value, he added.

“In recent times, no IPO shares have been traded below face value. They have in certain cases generated multiple times listing gains.”

According to CDSC data, as of the first week of December, 2025, the total number of demat accounts surpassed 72 lakhs, up from approximately 69 lakhs in June 2025. The number of Meroshare users stand at around 63 lakhs. Similarly, out of over 45 lakh TMS users, 27 lakhs are actively trading.