Asian Hydropower’s Lock-in Period for Over 2.5 Million Shares Ends in Falgun
23rd January 2026, Kathmandu
The lock-in period for a significant portion of shares in Asian Hydropower Limited (AHL) is set to expire in Falgun 2082, potentially increasing the tradable share supply in the secondary market. According to official company disclosures and market notices from January 2026, the lock-in period for exactly 2,576,800 units of shares will officially conclude on Falgun 13, 2082 (February 24, 2026).
Asian Hydropower’s Lock-in Period
The shares exiting the lock-in restriction include holdings from the company’s promoters, project-affected local residents of the Ilam district, and company employees. Once this restriction is lifted, these shareholders will be eligible to trade their holdings on the Nepal Stock Exchange (NEPSE) for the first time since the company’s initial public offering (IPO) allotment three years ago.
Detailed Breakdown of Unlocking Shares
Asian Hydropower Limited currently has a total of 3.4 million units of shares listed on NEPSE. The upcoming expiry on Falgun 13 affects approximately 75 percent of the total listed capital of the company. The specific categories of shares that will become tradable are:
Promoter Shares: 2,220,000 units held by the founders and institutional promoters.
Local Resident Shares: 340,000 units allocated to the residents of the project-affected areas in Ilam.
Employee Shares: 16,800 units held by the staff of Asian Hydropower Limited.
These shares were previously restricted from trading under the mandatory three-year lock-in provision mandated by the Securities Board of Nepal (SEBON). This period is designed to ensure that the individuals and institutions most responsible for the project’s development remain committed during its initial years of operation.
Regulatory Guidelines and Trading Restrictions
Under current securities regulations in Nepal, promoters and employees are prohibited from selling their shares for a minimum of three years from the date of the public share allotment. This rule serves as a safeguard for retail investors, preventing a sudden “pump and dump” scenario where those with inside information exit the company immediately after listing.
However, there are important exceptions to the unlocking process:
Directors and High-Level Management: Even after the lock-in period expires, directors and employees in higher management positions are not permitted to sell their shares. This is a corporate governance measure to ensure that those in decision-making roles maintain a long-term interest in the company’s success.
Conversion Process: Promoter shares often require a formal conversion process or a change in “demat” status before they can be traded as ordinary shares. Shareholders must coordinate with the share registrar, NMB Capital Limited, to ensure their units are eligible for secondary market transactions.
Potential Impact on AHL Stock Price
The release of over 2.57 million shares into the tradable pool is a major event for a company with a total market capitalization of approximately 1.87 billion rupees (as of January 2026). When the lock-in period ends, the “free float” or the number of shares available for daily trading significantly increases.
Advertisement
Market analysts point out two possible scenarios:
Selling Pressure: If a large number of local residents or employees decide to book profits simultaneously, the increased supply may lead to a short-term dip in the AHL stock price. As of late January 2026, AHL was trading around 552 rupees per share, with a 52-week range of 532 to 891 rupees.
Institutional Stability: If major promoters like Urja Developers or CE Construction Pvt. Ltd. choose to hold their shares, the market impact may be minimal. Institutional promoters often view hydropower projects as long-term cash-flow assets rather than speculative trades.
Project Performance and Financial Outlook
To gauge whether shareholders will hold or sell, investors are closely watching the operational performance of the 6.2 MW Lower Jogmai Khola Hydropower Project. Located in the Ilam district, this project has been in commercial operation since November 1, 2021 (Kartik 15, 2078).
As per the Q1 report for the fiscal year 2082/83, Asian Hydropower Limited reported:
Earnings Per Share (EPS): 17.32 rupees
Book Value Per Share: 90.26 rupees
P/E Ratio: Approximately 31.87
The company’s revenue stability depends heavily on the “Run-of-River” (RoR) nature of its project and its Power Purchase Agreement (PPA) with the Nepal Electricity Authority (NEA). For the current fiscal year, the company has shown signs of financial recovery, which may encourage promoters to hold their positions in anticipation of future dividends.
Conclusion: A Strategic Window for Investors
The expiry of the lock-in period on Falgun 13, 2082, represents a significant transition for Asian Hydropower Limited. It marks the shift from a “restricted” stock to a fully liquid asset on NEPSE. For existing shareholders, it is an opportunity for liquidity; for new investors, it may provide a better entry point if the increased supply leads to a price correction.
Market watchers are advised to monitor the “Floorsheet” and “Top Broker Holdings” during the final week of Magh and the first week of Falgun to see if any large-scale selling patterns emerge from the promoters or local shareholders.
For More: Asian Hydropower’s Lock-in Period
