NEPSE and Five Companies Sign Agreement for Share Issuance via Book Building Method

The Nepal Stock Exchange (NEPSE) has entered into an agreement with five companies to issue shares through the Book Building Process. Norvic International Hospital and Medical College Limited, Jagdamba Spinning Mills Limited, Time Pharmaceutical Limited, Laxmi Steel Ltd. and Purbanchal Lube Oil Llimited. All together Qualified Institutional Investors (QIIs) will apply for 5,451,080 units of shares of all these companies.

According to the agreement, these companies will issue their shares based on the book building guidelines approved by regulatory authorities. This method allows institutional investors to participate in price discovery before shares are offered to the general public.

The book building system is considered a more market-driven approach compared to the traditional fixed-price IPO system. It helps determine a realistic share price based on investor demand, thereby improving transparency and efficiency in the capital market.

The agreement marks a significant step toward modernizing Nepal’s capital market and aligning it with international practices. It is expected to attract more institutional participation and enhance investor confidence.

Further details regarding the participating companies and issuance timeline are expected to be disclosed in the coming days.