Manakamana Engineering Hydropower’s Lock-in Period for Over 5.42 Million Shares Ends in Bhadra
14th July 2026, Kathmandu
According to a formal notice issued by Manakamana Engineering Hydropower Company, the mandatory lock-in period for over 5.42 million shares is scheduled to expire on Bhadra 2, 2083.
Manakamana Engineering Hydropower’s Lock-in
Following this date, these previously restricted holdings will become eligible for public trading on the Nepal Stock Exchange, subject to prevailing securities guidelines and procedures.
Breakdown of Shares Exiting the Lock In Pool
A detailed analysis of the 5,423,380 individual shares exiting the restricted holding period shows that the vast majority belongs to the original project promoters. The upcoming market release consists of three specific categories of equity holdings:
5.20 million founder shares, which constitute the core foundational equity and original promoter backing of the hydropower project.
- 183,380 ordinary shares initially allotted to project-affected local residents of the public, who received their allotments during the early regional infrastructure subscription phase.
ShareSansar - 40,000 ordinary shares allocated directly to company employees as part of the internal reservation during the initial public offering process.
ShareSansar
Combined, these three distinct blocks represent a substantial volume of equity that will transition simultaneously into the tradeable public float.
Regulatory Guidelines Enforcing the Three Year Holding Period
Understanding the regulatory framework helps explain why this shift is taking place now. Securities Regulations in Nepal mandate that promoter shares and employee-allotted equities must remain locked for a strict three-year period following the completion of an initial public offering.
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This regulatory mechanism is implemented by the Securities Board of Nepal to achieve multiple corporate governance objectives:
- Protecting public retail investors from premature dumping by early institutional backers.
- Ensuring market stability during the fragile initial years of a newly listed company.
- Demanding a long-term operational commitment from the original promoters and internal workforce while the infrastructure stabilizes.
The upcoming expiration on Bhadra 2, 2083, indicates that the required three-year milestone from the initial allotment date in Bhadra 2080 has been successfully reached.
ShareSansar
Continuing Trading Restrictions for Insider Management Panels
Despite the broad unlocking of shares for standard promoters, regional residents, and workers, specific market participants will remain barred from selling their stakes. The company notice clarifies that members of the board of directors and senior management personnel face continuing restrictions.
Under strict insider trading laws and corporate governance rules enforced across the financial sector, top-tier executives cannot immediately offload their shares into the secondary market. This safeguard ensures that their personal financial interests stay aligned with retail investors and ongoing project operations.
Expected Market Dynamics and Trading Liquidity Impacts
For market observers and active stock traders, lock-in expirations serve as an important indicator for supply and demand dynamics on the stock exchange floor. When millions of shares transition into tradeable supply simultaneously, it frequently leads to short-term changes in overall market liquidity and price volatility.
Retail investors routinely watch these dates because an increased supply of shares can create downward pressure on stock prices if a high percentage of eligible founders decides to liquidate their positions at the same time. Conversely, if these holders retain their stakes, it signals ongoing internal confidence in the future earnings potential and operational performance of the hydropower facility.
