Number of Demat Accounts in Nepal Crosses 50 Lakh, Only Half of Them Apply for IPOs

The number of Demat accounts in Nepal has surpassed the 50 lakh mark.

A Demat Account or Dematerialised Account provides the facility of holding shares and securities in an electronic format. According to CDS and Clearing Limited's official website, there are a total of 50,07,242 Demat accounts in the country. 41,19,021 of them use Meroshare, the online application and shares settlement portal.

The participation of the general public rose exponentially in the last two years. Speedy digitization forced by the pandemic and lockdown also helped spread the investment frenzy in wider parts of the nation.

Approximately two years ago, 1,85,975 applicants applied for the IPO issue of Liberty Energy Company Limited. Compared to that, in the most-recent IPO issue of Nesdo Sambridha Laghubitta, 25,99,598 applicants have applied for a total of 3,01,13,700 shares, oversubscribing the issue 38.87 times.

Meanwhile, the highest-ever application count was seen in the recently-concluded IPO issue of Jalpa Samudayik Laghubitta, where 26,59,540 applicants applied for a total of 3,25,20,580 units.

The IPO craze deserves the credit of permeating the otherwise-untapped parts of the country with investment access. The bull trend that started two years ago also spread the investing gossip outside the nation's capital. However, even today, only a fraction of the Demat account holders participate in the secondary market. 

The IPO craze, and IPO issues being oversubscribed multiple times, have demonstrated that it is stupendous to conclude that Nepal lacks investment capital. With synergized efforts of all, the investment spectrum can reach every nook and cranny to channel capital from those who have it to those who can put it to better use.