Nebico Limited Gears Up For Rs. 200 Million IPO: A Landmark Opportunity In Nepal’s Food Sector With Siddhartha Capital

25th July 2025, Kathmandu

Nebico Limited IPO Siddhartha

In a significant development set to reshape Nepal’s capital market and invigorate its robust food manufacturing industry, Nebico Limited, a household name with a legacy spanning over six decades, has officially announced its plans for an Initial Public Offering (IPO) valued at Rs. 200 million. This strategic move aims to invite broader public participation, fuel ambitious expansion plans, and further solidify Nebico’s pioneering role in the domestic food processing landscape. To ensure a seamless and professionally managed offering, Nebico Limited has partnered with Siddhartha Capital Limited, one of Nepal’s most reputable and experienced merchant banks, to serve as the official issue manager.

The formal agreement between these two prominent entities was ceremoniously inked on Shrawan 8, 2082 (July 23, 2025), at Siddhartha Capital’s corporate headquarters in Naxal, Kathmandu. The signing ceremony was attended by key dignitaries from both organizations, underscoring the importance and mutual commitment to this major undertaking. Mr. Raj Bahadur Singh, the esteemed Chairman of Nebico Limited, and Mr. Sandeep Karki, the dynamic Chief Executive Officer of Siddhartha Capital Limited, affixed their signatures to the agreement, symbolizing a collaborative effort to bring this exciting investment opportunity to the Nepali public.

Nebico’s Enduring Legacy and Market Footprint

Established in 1964, Nebico Limited stands as a testament to enduring quality and innovation in Nepal’s food sector. It proudly holds the distinction of being one of the nation’s oldest and most revered food production companies. Over its impressive six-decade journey, Nebico has not only built a formidable brand but has also been instrumental in setting benchmarks and fostering the growth of the local food processing industry. Its unwavering commitment to producing high-quality food items, particularly its wide array of beloved biscuits and confectionery products, has garnered immense consumer trust and a loyal customer base across generations.

The company’s core manufacturing operations are strategically situated in the bustling Balaju Industrial Area in Kathmandu. Demonstrating its foresight and commitment to nationwide reach, Nebico has expanded its production capabilities with additional state-of-the-art plants in Hetauda and Bhairahawa. These strategically chosen locations enable Nebico to efficiently cater to diverse markets across the entire geographical expanse of Nepal, ensuring its popular products are readily available to consumers from the Terai plains to the Himalayan foothills.

Currently, Nebico boasts an impressive annual production capacity of 1,500 metric tons, a figure that highlights its significant contribution to Nepal’s food supply chain. Its extensive product portfolio, featuring a variety of biscuits and confectionery items, has become synonymous with quality and tradition in Nepali households. This long-standing market presence and the deeply ingrained brand image continue to drive sustained demand for Nebico’s offerings.

The Strategic Imperative of the IPO: Growth and Transparency

The decision to enter the capital market through this Rs. 200 million IPO represents a pivotal moment for Nebico Limited. The primary objective of this public offering is to secure vital additional funding, which will be strategically allocated to fuel the company’s ambitious future expansion plans. This includes investing in enhanced infrastructure, upgrading existing facilities, and potentially diversifying its cherished product offerings to meet evolving consumer preferences and market demands.

Beyond capital generation, the IPO is also expected to significantly bolster Nebico’s corporate governance and enhance its operational transparency. By becoming a publicly listed company, Nebico will adhere to stricter regulatory standards, fostering greater accountability and building even stronger trust with its stakeholders, including both existing and prospective investors. This move is anticipated to sharpen the company’s market competitiveness, positioning it for even greater success in the dynamic Nepali food industry.

Siddhartha Capital: A Trusted Partner in Capital Market Expertise

The appointment of Siddhartha Capital Limited as the issue manager is a crucial factor that adds immense credibility and assurance to Nebico’s public offering. As one of Nepal’s leading merchant banks, Siddhartha Capital possesses extensive expertise and a proven track record in successfully managing IPOs, FPOs (Further Public Offerings), and other intricate capital market instruments. Their deep understanding of market dynamics, regulatory compliance, and investor relations will be instrumental in guiding Nebico through every phase of the IPO process.

Investors considering this opportunity can expect a meticulously managed issuance, one that strictly adheres to all regulatory norms and is underpinned by sound financial practices. Siddhartha Capital’s involvement signifies a commitment to professionalism and efficiency, providing confidence to prospective investors eager to participate in Nebico’s growth story.

A New Horizon for Investors and Nepal’s Food Sector

With this upcoming IPO, Nebico Limited is poised to embark on an exciting new chapter in its distinguished business journey. It is a unique invitation for individual and institutional investors alike to become direct stakeholders in one of Nepal’s most respected and heritage food companies. This offering not only presents a fresh and compelling investment opportunity for the public but also promises to play a vital role in supporting the continued growth, modernization, and innovation within the domestic food manufacturing sector, a cornerstone of Nepal’s economy.

Further comprehensive details regarding the specific IPO date, share pricing, and the allotment process are eagerly awaited and are expected to be formally announced by Nebico Limited and Siddhartha Capital in the near future. This IPO represents a compelling chance to invest in a well-established, profitable, and forward-looking Nepali company deeply rooted in the nation’s culinary traditions.

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