SEBON Sets Record with IPO Issuance of Over 22 Billion in Financial Year 2079/80; Listed Companies Market Cap at Whopping 81.61 Arba
Wed, Jul 26, 2023 6:13 PM on Economy, Stock Market, Latest,
Compilation by Aashish Chaudhary & Praisha Shrestha
In the financial year 2079/80, the Securities Board of Nepal (SEBON) has achieved a significant milestone by granting permission for initial public offerings (IPOs) worth more than 22 billion rupees. This marks the highest amount ever sanctioned in any financial year, surpassing the previous record set during the financial year 2077/78 when SEBON permitted IPOs worth 15 billion 18 crores. The new record was established under the leadership of Chairman Ramesh Hamal, breaking the previous record set during the tenure of Bhishma Raj Dhungana.
During the financial year 2079/80, SEBON approved a total of 42 companies to issue IPOs. Among these companies, 29 belong to the hydropower sector, while there are 4 microfinance companies, 1 from the other group, 4 from insurance group, 1 from the hotel group, 1 from the investment group, and 1 from the production and processing group.
Under the approval, Nepal Republic Media Limited (NRML) was listed under the other groups, Kalinchowk Darshan Limited (KDL) and City Hotel Limited (CITY) under the hotel group, Hathway Investment Nepal Limited (HATHWAY) under the investment group, and Ghorahi Cement Industry Limited (GHORAHI) under the production and processing group. Notably, Republic Media became the first media company to issue an IPO during this period. Additionally, SEBON granted permission for IPO issuance to companies with a face value of Rs 50 for the first time, with Hathaway Investments receiving the approval for shares at this face value.
The fast-paced work of SEBON enabled it to efficiently process the applications for IPOs, resulting in numerous companies receiving permission to issue shares. This has led to a record-breaking number of IPOs in the financial year 2079/80.
Furthermore, the increasing number of companies seeking to issue IPOs and the granting of IPO issuance at premium prices have contributed to the substantial total of 22 billion rupees for the financial year.
Over the past few financial years, the Securities Board of Nepal (SEBON) has been granting permissions for Initial Public Offerings (IPOs) with varying amounts. In the financial year 2079/80, the board authorized IPO issuance of a substantial 22 billion 86 million rupees, setting a new record as the highest amount sanctioned in any financial year. Prior to this, during the financial year 2078/79, IPOs worth 7 billion 20 crores rupees were approved. The year 2077/78 witnessed IPO issuance permission for an amount of 15 billion 18 crores rupees, while in the financial year 2076/77, IPOs totaling 3 billion 99 crores rupees were granted approval. Additionally, during the financial year 2075/76, IPOs amounting to 7 billion 34 crores rupees were given the green light by SEBON. These figures reflect the changing trends in IPO approvals and the growth of the capital market in Nepal.
Among the 42 companies that had their IPO approved by the regulatory body, SEBON, 25 companies have completed all due processes and have been listed in the Nepal Stock Exchange. 24 of the listed companies are freely tradable, while, Khaptad Laghubitta Bittiya Sanstha's trading is currently halted to conduct merger-related processes.
The 24 company's combined market capitalization is Rs. 81.61 Arba, which constitutes 2.57 percent of the total market capitalization of NEPSE (i.e., 3.16 Kharba) as on 26th of July, 2023.
Similarly, six among the 42 companies have concluded IPO allotment for all phases and are due to be listed in the stock exchange.
Two hydropower companies, including Mid-Solu Hydropower Limited and Chirkhwa Hydro Power Limited, which had their IPO proposal approved by SEBON in FY 2079-80 are yet to issue their IPO.
*Note: The LTP and the market capitalization is as on 26th of July, 2023.
| S.No | Name of company | Sector | Status | Public Issue Size | Public Issue Amount | Listed Shares | LTP (in Rs.) | Market Cap. (in Rs.) |
|---|---|---|---|---|---|---|---|---|
| 1 | Eastern Hydropower Limited | Hydropower | Listed in NEPSE | 1,240,000.00 | 124,000,000.00 | 6,200,000.00 | 332.00 | 2,058,400,000.00 |
| 2 | Khaptad Laghubitta Bittiya Sanstha | Microfinance |
Listed in NEPSE (Trading Halted Due to Merger) |
132,000.00 | 13,200,000.00 | 400,000.00 | N/A | - |
| 3 | Srijanshil Laghubitta Bittiya Sanstha | Microfinance | Listed in NEPSE | 393,750.00 | 39,375,000.00 | 1,093,750.00 | 1,141.00 | 1,247,968,750.00 |
| 4 | Peoples Hydropower Company Limited | Hydropower | Listed in NEPSE | 8,000,000.00 | 800,000,000.00 | 32,000,000.00 | 324.00 | 10,368,000,000.00 |
| 5 | Barahi Hydropower Public Limited | Hydropower | Listed in NEPSE | 700,000.00 | 70,000,000.00 | 2,500,000.00 | 486.00 | 1,215,000,000.00 |
| 6 | Kalinchowk Darsan Limited | Others | Listed in NEPSE | 1,200,000.00 | 120,000,000.00 | 6,000,000.00 | 987.00 | 5,922,000,000.00 |
| 7 | Asian Hydropower Limited | Hydropower | Listed in NEPSE | 1,180,000.00 | 118,000,000.00 | 3,400,000.00 | 348.90 | 1,186,260,000.00 |
| 8 | Supermai Hydropower Limited | Hydropower | Listed in NEPSE | 1,000,000.00 | 100,000,000.00 | 5,000,000.00 | 582.90 | 2,914,500,000.00 |
| 9 | Super Madi Hydropower Limited | Hydropower | Listed in NEPSE | 3,150,000.00 | 315,000,000.00 | 21,000,000.00 | 393.50 | 8,263,500,000.00 |
| 10 | Maya Khola Hydropower Co. Limited | Hydropower | Listed in NEPSE | 3,400,000.00 | 340,000,000.00 | 10,000,000.00 | 228.00 | 2,280,000,000.00 |
| 11 | Shuvam Power Limited | Hydropower | Listed in NEPSE | 580,580.00 | 58,058,000.00 | 2,000,000.00 | 766.20 | 1,532,400,000.00 |
| 12 | Molung Hydropower Company Limited | Hydropower | Listed in NEPSE | 3,531,000.00 | 353,100,000.00 | 8,025,000.00 | 212.70 | 1,706,917,500.00 |
| 13 | Makar Jitumaya Suri Hydropower Limited | Hydropower | Listed in NEPSE | 2,280,000.00 | 228,000,000.00 | 7,600,000.00 | 270.10 | 2,052,760,000.00 |
| 14 | Sanima Middle Tamor Hydropower Limited | Hydropower | Listed in NEPSE | 8,331,250.00 | 833,125,000.00 | 33,325,000.00 | 287.20 | 9,570,940,000.00 |
| 15 | BPW Laghubitta Bittiya Sanstha Limited | Microfinance | Listed in NEPSE | 97,000.00 | 9,700,000.00 | 300,000.00 | 1,315.00 | 394,500,000.00 |
| 16 | Sagarmatha Jalbidhyut Company Limited | Hydropower | Listed in NEPSE | 5,488,000.00 | 548,800,000.00 | 11,200,000.00 | 254.10 | 2,845,920,000.00 |
| 17 | Aatmanirbhar Laghubitta Bittiya Sanstha | Microfinance | Listed in NEPSE | 203,380.00 | 20,338,000.00 | 623,380.00 | 2,324.50 | 1,449,046,810.00 |
| 18 | Dolti Power Company Limited | Hydropower | Listed in NEPSE | 1,609,458.00 | 160,945,800.00 | 5,364,860.00 | 239.90 | 1,287,029,914.00 |
| 19 | Bhugol Energy Development Company Limited | Hydropower | Listed in NEPSE | 1,632,160.00 | 163,216,000.00 | 5,440,534.00 | 231.00 | 1,256,763,354.00 |
| 20 | Menchhiyam Hydro Power Limited | Hydropower | Listed in NEPSE | 1,627,750.00 | 162,775,000.00 | 5,425,833.00 | 237.00 | 1,285,922,421.00 |
| 21 | Ingwa Hydropower Limited | Hydropower | Listed in NEPSE | 1,800,000.00 | 180,000,000.00 | 6,000,000.00 | 270.00 | 1,620,000,000.00 |
| 22 | Mai Khola Hydropower Limited | Hydropower | Listed in NEPSE | 1,921,568.00 | 192,156,800.00 | 3,121,568.00 | 293.90 | 917,428,835.20 |
| 23 | Modi Energy Limited | Hydropower | Listed in NEPSE | 7,250,000.00 | 725,000,000.00 | 29,000,000.00 | 222.00 | 6,438,000,000.00 |
| 24 | Rawa Energy Development Limited | Hydropower | Listed in NEPSE | 840,000.00 | 84,000,000.00 | 2,800,000.00 | 399.10 | 1,117,480,000.00 |
| 25 | City Hotel Limited | Hotel | Listed in NEPSE | 1,674,000.00 | 167,400,000.00 | 16,740,000.00 | 758.00 | 12,688,920,000.00 |
| 26 | Three Star Hydropower Limited | Hydropower | IPO Allotment Concluded | 1,231,250.00 | 123,125,000.00 |
- |
NA | |
| 27 | Ghorahi Cement Industry Limited | Manufacturing and Processing | IPO Allotment Concluded | 7,943,801.00 | 3,441,651,785.00 | - | NA | |
| 28 | Nepal Republic Media Limited | Others | IPO Allotment Concluded | 4,353,000.00 | 435,300,000.00 | - | NA | |
| 29 | Upper Syange Hydropower Limited | Hydropower | IPO Allotment Concluded | 870,000.00 | 87,000,000.00 | - | NA | |
| 30 | Kutheli Bukhari Small Hydropower Limited | Hydropower | IPO Allotment Concluded | 243,675.00 | 24,367,500.00 | - | NA | |
| 31 | Upper Lohore Khola Hydropower | Hydropower | IPO issued to locals, allotment concluded for foreign migrants, Issuance for General Public Pending | 2,498,040.00 | 249,804,000.00 | - | NA | |
| 32 | IME Life Insurance Company Limited | Insurance | IPO Allotment Concluded | 12,000,000.00 | 2,760,774,000.00 | - | NA | |
| 33 | Manakamana Engineering Hydropower Limited | Hydropower | IPO issuance for Locals and Foreign migrants concluded | 2,800,000.00 | 280,000,000.00 | - | NA | |
| 34 | Bhagwati Hydropower Development Co. Limited | Hydropower | IPO issuance for locals extended, Issuance for foreign migrants concluded | 1,430,162.00 | 165,898,792.00 | - | NA | |
| 35 | Reliable Nepal Life Insurance Limited | Insurance | IPO issuance concluded for foreign migrants | 12,000,000.00 | 2,989,800,000.00 | - | NA | |
| 36 | Hathway Investment Nepal Limited | Investment | Issue ongoing for foreign migrants | 2,925,000.00 | 146,250,000.00 | - | NA | |
| 37 | Mid-Solu Hydropower Limited | Hydropower | To be issued | 1,496,800.00 | 149,680,000.00 | - | NA | |
| 38 | Mandu Hydropower Limited | Hydropower | Issue ongoing for locals and foreign migrants | 1,636,370.00 | 337,092,220.00 | - | NA | |
| 39 | Sun Life Insurance Company | Insurance | Issue ongoing for foreign migrants | 9,600,000.00 | 2,227,680,000.00 | - | NA | |
| 40 | Citizen Life Insurance Company Limited | Insurance | Issue ongoing for foreign migrants | 11,250,000.00 | 2,664,000,000.00 | - | NA | |
| 41 | Chirkhwa Hydro Power Limited | Hydropower | To be issued | 1,200,000.00 | 120,000,000.00 | - | NA | |
| 42 | Mathilo Mailun Khola Jalvidhyut Limited | Hydropower | Issue ongoing for foreign migrants and locals | 2,500,000.00 | 250,000,000.00 | - | NA | |
| Total | 135,239,994 | 22,378,612,897 | 81,619,657,584.20 | |||||
