Mandu Hydropower Shares to Become Tradable as Lock-in Expires
7th August 2026, Kathmandu
The mandatory three year lock-in period for more than twelve million equity shares of Mandu Hydropower Limited will officially conclude on September 8, 2026, corresponding to Bhadra 23, 2083 BS.
Mandu Hydropower Lock-in Expires
Upon the completion of this statutory timeframe, the restricted equity shares will become fully eligible for active buying and selling in the secondary equity market through the Nepal Stock Exchange. This regulatory transition represents a major corporate milestone for the hydropower producer and adds substantial volume to the overall tradable float of the company on the national stock market.
Comprehensive Breakdown of Unlocked Share Categories
A total volume of 12,222,553 ordinary shares will exit the mandatory lock-in restriction and enter the tradable secondary market. The unlocking process encompasses three distinct groups of early equity holders and internal corporate stakeholders who acquired shares prior to or during the initial public offering process.
The largest portion of the unlocked equity consists of founder promoter holdings. A total of 12,000,000 promoter shares held by the founding investors and institutions of Mandu Hydropower Limited will complete their mandatory holding period. These founder holdings represent the core equity capital injected during the early development and construction phases of the project.
The second category includes equity units allocated to residents of the project affected regions. A total of 193,700 ordinary shares were originally issued and allotted to local residents living in the immediate vicinity of the hydropower generation facilities in Makwanpur and Lalitpur districts. These local residents received preferential allotment rights as part of community participation frameworks in national infrastructure projects.
The third category covers equity units allocated to corporate staff. A total of 28,853 ordinary shares originally reserved and allotted to eligible employees of Mandu Hydropower Limited will complete their holding restriction, allowing staff members to trade their equity on the open market.
Regulatory Framework Governing Lock In Restrictions in Nepal
Capital market operations in Nepal are governed by strict regulatory rules established by the Securities Board of Nepal to preserve market stability and protect public investors. Under prevailing securities regulations, equity shares issued to company founders, project affected local residents, and corporate employees during an initial public offering are subject to a mandatory three year lock-in period.
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This statutory lock-in period begins on the date the initial public offering shares are officially allotted to the general public. Mandu Hydropower Limited completed its public share allotment on September 9, 2023, corresponding to Bhadra 24, 2082 BS. By maintaining a mandatory holding period of three full years from the general allotment date, the regulatory framework ensures that major stakeholders remain committed to the enterprise during its initial post-listing stabilization phase.
Strategic Rationale Behind Mandatory Share Holding Periods
The regulatory requirement for holding restrictions serves several important economic and governance functions within national capital markets. First, placing founder promoter shares under restriction prevents early investors from liquidating their stakes immediately after a public listing, thereby ensuring continuous leadership and accountability during early operational phases.
Second, reserving shares for project affected local communities builds local ownership and community support for infrastructure projects while encouraging long term investment habits among rural households. Third, restricting sudden supply influxes protects ordinary retail investors from sharp price volatility that could occur if large blocks of insider equity were dumped onto the secondary market immediately following listing.
Secondary Market Dynamics and Secondary Trading Mechanics
The release of over twelve million equity shares significantly alters the capital structure dynamics of Mandu Hydropower Limited on the Nepal Stock Exchange. Prior to the expiration date, only the shares allotted to the general public were freely tradable in daily market sessions. The inclusion of promoter, local, and employee shares substantially increases the overall float available for market transactions.
For institutional and individual shareholders holding the newly unlocked units, trading requires valid dematerialized share accounts linked through Central Depository Services and Clearing Limited. Shareholders wishing to trade their equity must ensure their physical share certificates or electronic records are properly updated and credited to their beneficiary accounts. Once credited, trading can take place seamlessly through registered stockbrokers using the automated trading system of the Nepal Stock Exchange.
Company Profile and Project Operational Context
Mandu Hydropower Limited was established as a private sector energy enterprise focused on developing hydroelectricity projects to support national energy generation in Nepal. The company operates the Bagmati Khola Small Hydropower Project located along the Bagmati River in Makwanpur district. The run of river power generation facility delivers electricity into the national grid under a long term Power Purchase Agreement signed with the Nepal Electricity Authority.
The commercial operation of the power plant has provided stable operational cash flows and steady revenue streams for the enterprise. With the conclusion of the three year share lock-in period, the company enters a mature listing phase where institutional investors, retail traders, and original founders can interact within a fully liquid equity marketplace.
For More: Mandu Hydropower Lock-in Expires
