30th October 2022, Kathmandu
Nearly 3 dozen companies are seen in the pipeline for IPO issuance. Currently, 35 companies are awaiting approval from the Securities and Exchange Board to issue IPOs.
According to the Securities Board, 35 companies have applied to the board for issuing an IPO worth more than 14 billion rupees. The board says the IPO of more than half a dozen companies that applied has reached the final stage of approval.
There are many hydropower companies that have issued IPOs. 20 hydropower companies are among the 35 companies that are preparing for IPO issuance.
Among the companies that have sought permission to issue IPOs, 2 companies have prepared to issue IPOs at a premium. Reliance Life Insurance and Ghorahi Cement have prepared to issue IPOs at a premium. Similarly, Sarbottam Cement and Reliance Spinning Mills are preparing to issue IPO through book building. Others will bring the IPO for sale at a fixed price of 100 rupees.
Recently, the attraction of investors in IPO is increasing. Since the IPO will generate good income, the number of investors who fill the IPO has increased dramatically in the last few years, and the number of applications are many times higher than the number of companies that have been put up for sale.
Now the number of demat accounts has reached more than 54 lakhs. More than 1.5 lakhs have been applying for every IPO. As a result, IPOs sold by companies are easily sold.
Currently, although the number of buyers in the secondary market is low, it seems that investors are still attracted to the IPO. Even if 10 shares of good companies are IPOed, the attractiveness of IPO is still there because it is possible to earn handsome income in a short period of time.
After Tihar, many companies will issue IPOs to the general public after the Securities Board gives permission. Barahi Hydropower has already received permission from the Securities Board to issue an IPO. Currently, the hydropower is selling IPO locally. After the IPO sale to the locals, the IPO sale will be opened for the general public.
Even the companies that sought permission to issue IPOs from the Securities Board a year ago have not yet received permission to issue IPOs. The companies plan to sell the IPO as soon as they get the permission to issue the IPO.
