Shreenagar Agritech Industries Launches First Phase IPO from Today

27th August 2025, Kathmandu

Shreenagar Agritech Industries has launched the first phase of its Initial Public Offering (IPO) today, August 27, a significant event in Nepal’s capital market.

Shreenagar Agritech IPO

This offering is specifically targeted at two key groups: local residents of the industry-affected areas and Nepali citizens who are currently employed abroad with valid labor permits. The IPO is a crucial step for the company as it seeks to raise capital and strengthen its position in the rapidly growing agritech sector.

IPO Details and Structure

The Securities Board of Nepal (SEBON) has granted approval for Shreenagar Agritech Industries to issue a total of 3,262,500 shares at a par value of NPR 100 per share. This represents 20% of the company’s total authorized capital of NPR 1.63 billion, with the total issue valued at NPR 326.25 million. The issuance is divided into two distinct categories to ensure fair and equitable participation:

Local Residents of Industry-Affected Areas: To ensure that local communities directly impacted by the company’s operations can benefit from its success, 163,125 shares (1% of total capital) have been reserved for residents of the Rupandehi and Palpa districts. This provides a direct financial incentive and fosters community ownership in the company. For this group, the minimum application is set at 10 shares, while the maximum is 10,000 shares.

Nepalis Working Abroad: The company has also allocated 309,938 shares (10% of the public portion) for Nepali citizens who are employed overseas with official labor permits. This provides a valuable opportunity for the Nepali diaspora to invest their hard-earned money back into a promising domestic sector. The application range for this group is also a minimum of 10 shares and a maximum of 10,000 shares.

This strategic allocation reflects a growing trend among Nepali companies to engage a broader range of stakeholders in their public offerings. By prioritizing locals and migrant workers, Srinagar Agritech Industries aims to build a strong, community-oriented shareholder base and tap into the financial resources of the Nepali diaspora.

The Application Process and Timeline

The application process has been streamlined to be as accessible as possible for both groups of investors.

For Local Residents (Rupandehi and Palpa): Applications must be submitted physically at designated branches of select banks. The participating banks include Nabil Bank (Tansen, Palpa, and Farshatikar branches), NMB Bank (Tansen and Farshatikar branches), and Global IME Bank (Tansen branch).

For Nepalis Working Abroad: The process is entirely digital, making it easy for investors to apply from their location overseas. They can apply through any ASBA-approved bank and financial institution authorized by SEBON, or more conveniently, via the CDSC’s Mero Share online portal. This digital option is a game-changer, as it removes the logistical hurdles of being physically present in Nepal to participate in the IPO.

The IPO for migrant Nepalis is set to close on its earliest date on August 31 (Bhadra 15), with the latest possible closing date being September 10 (Bhadra 25). For local residents, the application window remains open until the latest closing date of September 25 (Ashoj 9), with an earliest closing date of September 10 (Bhadra 25). These timelines, which adhere to SEBON guidelines, ensure that all eligible applicants have sufficient time to submit their bids.

Significance of the IPO

The IPO launch of Shreenagar Agritech Industries is a major event for several reasons:

Growth for the Company: The funds raised from the IPO will be utilized for the company’s expansion projects, strengthening its operational capacity, and improving its market presence. A broader shareholder base will also enhance the company’s public image and corporate governance.

Investment in Agritech: This IPO highlights the immense potential of the agritech industry in Nepal. The sector is critical for national development, focusing on modernizing agriculture, ensuring food security, and improving rural livelihoods. Investing in Srinagar Agritech Industries is, therefore, a direct investment in the future of Nepal’s agricultural economy.

Empowerment of Locals and Migrant Workers: By reserving shares for locals and the Nepali diaspora, the company is democratizing investment opportunities. It allows communities and individuals who are often left out of such ventures to directly benefit from the country’s economic growth. For migrant workers, it is a way to channel their remittances into productive domestic investments.

Expert Management: The IPO is being managed by Nabil Investment Banking Limited, a reputable issue manager with a strong track record of handling large-scale public offerings. Their expertise ensures that the entire process is conducted smoothly, transparently, and in compliance with all regulatory requirements.

In conclusion, the opening of Shreenagar Agritech Industries’ IPO is a landmark moment. It not only provides a lucrative investment opportunity for locals and Nepalis abroad but also symbolizes a step forward for the country’s agritech sector. As Nepal continues to prioritize agribusiness and rural development, companies like Shreenagar Agritech Industries are poised to play a central role. Interested investors are encouraged to apply within the specified dates to secure their stake in this emerging industry and contribute to the nation’s economic progress.

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