SY Panel Nepal to Launch IPO from September 23: Focus on Local and Overseas Investors

17th September 2025, Kathmandu

SY Panel Nepal Limited is launching its Initial Public Offering (IPO) on September 23, 2025 (Ashwin 7, 2082).

SY Panel IPO Launch

The IPO, which was postponed from its original Bhadra 29 date due to nationwide disruptions, targets both local residents of industry-affected areas and Nepali workers abroad. The company plans to issue 5,232,548 ordinary shares, which represents 40% of its authorized capital. The IPO is rated ICRA Nepal Issuer Rating Double B, which indicates a moderate risk of the company defaulting on its financial obligations. This rating is important for investors as it provides a professional assessment of the company’s creditworthiness.

IPO Allocation and Target Investors

The IPO is specifically structured to promote financial inclusion and provide targeted investment opportunities. The shares are allocated to different groups as follows:

Local Residents: 2% of the shares (261,629 shares) are reserved for residents of all wards in Ratnanagar Municipality, Chitwan. This targeted approach ensures that the local community, which is directly impacted by the company’s operations, can benefit from its growth.

Nepali Workers Abroad: 10% of the shares allocated to the general public (497,992 shares) are available to Nepalis working overseas who have obtained government labor approval. This initiative allows the Nepali diaspora to participate in the country’s economic development and investment opportunities.

Employees and Collective Investment Funds: The company has also set aside 149,127 shares for its employees and 248,546 shares for collective investment funds.

Investors can apply for a minimum of 10 shares and a maximum of 50,000 shares. The company has not yet announced a closing date for the IPO.

Subscription Process and IPO Rating

The subscription process is designed to be accessible to all target investors. Local residents of the designated area can apply through the SY Panel Nepal office in Ratnanagar, Chitwan, as well as through select branches of Prabhu Bank and Prabhu Capital’s online platform. A nominal fee of NPR 2 is charged per application for local residents. For Nepali workers abroad, the application process is handled through the C-ASBA system, which is widely used by authorized banks and financial institutions in Nepal. This system ensures a streamlined and secure application process, regardless of the investor’s location. The IPO’s rating of ICRA Nepal Issuer Rating Double B is a key piece of information for potential investors. An ICRA Nepal rating of ‘BB’ indicates that the company has a moderate risk of default in meeting its financial obligations. While this is not a recommendation to buy or sell, it provides a crucial, third-party assessment of the company’s credit risk. The rating helps investors make a more informed decision by weighing the potential returns against the level of risk involved.

Strategic Importance and Role of Prabhu Capital

The IPO of SY Panel Nepal is a strategically important move for both the company and the broader Nepali capital market. By specifically targeting local residents and the Nepali diaspora, the company is not only raising capital but also fostering a sense of community ownership and financial inclusion. It provides a direct channel for individuals who may not have had access to traditional investment opportunities to participate in the stock market. Prabhu Capital Limited, acting as the issue manager, plays a crucial role in ensuring the entire process is conducted smoothly, adhering to all regulatory requirements set by the Securities Board of Nepal (SEBON). Their involvement instills confidence in investors and guarantees proper distribution of shares. This IPO marks a significant step towards democratizing ownership and strengthening the link between local industrial development and global investment participation, contributing to a more dynamic and inclusive financial ecosystem in Nepal. The IPO’s successful launch could also set a precedent for other companies to consider similar targeted approaches in their future public offerings.

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