Ambe Steels IPO Premium Issue Proposal Explained
20th January 2026, Kathmandu
The Ambe Steels IPO premium issue marks a significant development in the capital market of Nepal, as Ambe Steels Limited prepares to issue its Initial Public Offering at a premium price. The company has confirmed that a special proposal to this effect will be presented at its upcoming Annual General Meeting scheduled for Magh 28, 2082. If approved by the shareholders, this move will formally authorize the company to enter the public market with a valuation above the standard face value of 100 rupees.
Ambe Steels IPO Premium
This decision reflects growing confidence in the operational strength, production capacity, and long term growth prospects of the company within the industrial and construction sectors of Nepal. Ambe Steels has already established its position as a dominant player in the steel industry, and the transition to a public company is expected to further enhance its brand equity and financial flexibility.
Special Proposal at the Annual General Meeting
According to the official agenda disclosed for the 3rd AGM, Ambe Steels Limited will table a special proposal seeking approval to determine the IPO issue price at a premium. The meeting, which was rescheduled for Magh 28 (February 11, 2026), will take place at the corporate office of the company in Teku, Kathmandu.
The proposal also seeks to grant full authority to the Board of Directors of the company to carry out all necessary procedures related to the IPO issuance. This includes finalizing the exact premium price based on financial performance, complying with the strict regulatory requirements of the Securities Board of Nepal, and coordinating with market institutions to ensure a smooth public offering process.
Appointment of Issue Manager and Underwriter
As part of the Ambe Steels IPO premium issue, the general meeting will also consider proposals to appoint an issue manager and an underwriter. These appointments are critical components of any premium priced IPO, as these professionals help assess the valuation of the company, manage subscription risks, and ensure investor confidence.
Reports indicate that the flagship steel unit of the group, Jay Ambe Steels Limited, has already partnered with NIMB ACE Capital for its own upcoming issue. For the Bhairahawa based Ambe Steels Limited, the AGM will finalize similar partnerships. Additionally, shareholders will deliberate on authorizing the board to decide on the utilization of funds raised from the public issue. Transparent allocation of IPO proceeds—whether for debt reduction or capacity expansion—is a key factor evaluated by both regulators and investors.
Company Background and Industrial Strength
Ambe Steels Limited operates under the umbrella of the Ambe Group, one of the most prominent and diversified conglomerates in Nepal. The group is chaired by Shovakar (Hari) Neupane, a leading figure in the industrial sector of the country with nearly four decades of entrepreneurial experience.
The steel manufacturing plant of Ambe Steels is located in the Lumbini zone at Gonaha, near Bhairahawa. This location is strategically important due to its proximity to major trade routes and the Indian border, facilitating the import of raw materials like sponge iron and billets. The company has a production capacity of 400 metric tons per day, making it a significant contributor to the domestic steel supply chain in Nepal.
Combined with its sister concern, Jay Ambe Steels in Nepalgunj, the group has a massive daily production capacity that supplies high strength TMT rebars, GI wires, and gabion boxes across the nation. The group reported an annual turnover exceeding 300 million dollars in the 2024-2025 period, underscoring its financial scale.
Rationale Behind Premium Pricing
Issuing an Initial Public Offering at a premium price typically signals the confidence of the management in the intrinsic value, earnings potential, and market position of the company. For Ambe Steels, several factors may justify a premium valuation:
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Established Production: A long history of operations since 2009 with a proven track record.
Strong Brand: High brand recognition in the construction sector under the “Ambe” name.
Infrastructure Demand: Sustained demand from national pride projects, hydropower, and urban development in Nepal.
Financial Performance: Consistent revenue growth and improving profitability margins.
However, premium IPOs also face higher scrutiny from investors. Potential shareholders will closely assess the debt exposure, market competition from other domestic giants, and the future expansion plans of the company before committing their capital.
Market Context and Investor Outlook
The capital market of Nepal has seen a steady rise in manufacturing and industrial companies seeking public funding. Recently, companies like Jagdamba Steels and various cement manufacturers have also pursued premium priced offerings. While these can offer attractive long term value, they require robust disclosures and realistic growth projections.
For potential investors, the Ambe Steels IPO premium issue will be evaluated based on the justification of the pricing, the clarity of fund utilization, and the ability of the company to maintain margins despite fluctuations in international scrap and raw material prices.
Conclusion
The Ambe Steels IPO premium issue represents a major milestone for the company as it prepares to access public capital markets at a premium valuation. With shareholder approval pending at the Magh 28 general meeting, the company is positioning itself for significant expansion while strengthening its corporate governance framework.
If executed transparently and priced responsibly, the IPO could enhance the growth trajectory of Ambe Steels and offer investors direct exposure to the industrial manufacturing sector of Nepal. The coming weeks will be crucial as shareholders and market participants assess the final proposal and its long term implications for the portfolio of the group.
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