Bungal Hydro Signs Agreement for Dematerialization of Shares
29th October 2025, Kathmandu
Bungal Hydro Limited has marked a crucial milestone for its investors and the Nepalese capital market by formally signing an agreement with the Central Depository System and Clearing Limited (CDSC) for the dematerialization of its shares.
Bungal Hydro Shares Dematerialization
This strategic transition, which involves the company’s share registrar, Himalayan Capital Limited, facilitates the electronic recording of share ownership, replacing the outdated system of physical share certificates. This move is a significant step towards full market integration and is set to greatly enhance the experience for its shareholders, particularly those who recently participated in the company’s Initial Public Offering (IPO).
The Path to Electronic Trading for IPO Investors
The dematerialization agreement, formalized on 11th Kartik 2082 (28 October 2025), is the essential bridge that connects the shares allotted during the recent IPO to the active trading market of the Nepal Stock Exchange (NEPSE).
IPO Allotment to Demat Account: The 1,701,500 shares issued to the general public, which were allotted on 2nd Ashoj 2082 (18 September 2025) , will now be electronically credited directly into the investors’ Demat accounts. This swift process ensures that investors can quickly take possession of their securities without the hassles of physical documentation.
Imminent NEPSE Listing: Following the dematerialization process, Bungal Hydro’s shares will be officially listed on NEPSE. This listing is the prerequisite for secondary market trading.
Enhanced Liquidity and Transparency: Shareholders will be able to begin trading their shares from the very next trading day after the listing. This influx of shares from a new hydropower company is expected to positively impact market liquidity in the hydropower sector, while the real-time transactions on NEPSE will establish a clear, transparent market price for the shares, boosting overall investor confidence.
Key Benefits of Digital Shareholding for Investors
The shift to dematerialized shares offers multiple advantages that align with modern financial market best practices, prioritizing investor convenience and security.
Elimination of Physical Risks: Electronic holdings completely remove the risks associated with physical certificates, such as loss, theft, forgery, or damage. This is a major relief for investors who often face administrative delays and costs when dealing with misplaced paper certificates.
Seamless Transaction Processing: Dematerialization enables instant settlement of trades—shares are transferred almost instantaneously upon sale and purchase—which dramatically reduces paperwork and administrative friction. This ease of transferability simplifies the management of investments.
Streamlined Corporate Benefits: Holding shares in a Demat account ensures that all future corporate benefits, such as bonus shares, right shares, or cash dividends, are processed and credited automatically and efficiently, without the need for manual submissions or follow-ups.
Bungal Hydro’s Commitment to Modern Governance
The dematerialization initiative underscores Bungal Hydro Limited’s proactive approach to corporate governance and shareholder value. The company, which is part of the SG Group and successfully operates the 10.7 MW Sanigad Hydropower Project in the Bajhang district, is demonstrating a commitment to not only generating renewable energy but also to adopting a modern corporate structure.
By embracing the electronic securities framework, Bungal Hydro aligns itself with the progressive development of Nepal’s capital market infrastructure. This not only enhances its internal administrative efficiency but also strengthens its overall reputation, making its stock more attractive and accessible to a broader base of retail and institutional investors. This modernization is a clear signal of the company’s long-term vision and its dedication to fostering a trusting, transparent relationship with its investors. The leadership, including Chairman Shiv Prasad Ghimire and the diverse board, remains focused on ensuring the company’s continued growth in Nepal’s vital hydropower sector.
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