Nepal Hydropower IPO Freeze Crisis: Investors Urge PM Oli Action
14th April 2025, Kathmandu
Hydropower investors have urged Prime Minister KP Sharma Oli to take immediate action. They want the government to clear the path for share issuances that have been stuck for nearly two years.
Nepal Hydropower IPO Freeze Crisis
The Independent Power Producers’ Association Nepal (IPPAN) sent a formal letter to the Prime Minister. In the letter, they asked for help to resume Initial Public Offerings (IPOs) and rights share issuance for hydropower companies.
The Securities Board of Nepal (SEBON) stopped giving approvals about 20 months ago. It cited a directive from the Public Accounts Committee (PAC) as the reason. The PAC had met on Poush 12, 2080 BS (December 2023). In that meeting, it instructed SEBON not to approve IPOs unless companies showed a real net worth above 90%. Since then, SEBON has halted all such approvals.
This decision has created a roadblock for 53 hydropower companies. Out of these, 42 companies had planned to issue IPOs worth around NPR 20 billion. Another 11 companies were ready to issue rights shares worth about NPR 4.5 billion. None of these issuances has moved forward.
IPPAN says the delay is harming project development. Many hydropower companies need the capital to continue or complete construction. Without new funds, these projects now face serious delays and financial stress. IPPAN believes the situation is becoming critical. The group is worried the problem could slow down the entire sector.
On the other hand, SEBON has provided a different explanation. It says many of the files have been inactive for too long. Because of this, companies must now submit updated documents. SEBON has not confirmed when or how it will resume the approval process.
This is not the first time IPPAN has tried to solve the issue. It had earlier met with lawmakers, ministers, secretaries, and SEBON officials. The goal was always the same—find a way to let hydropower companies issue shares and raise funds.
The halt has affected public investment in clean energy. Many of Nepal’s hydropower projects rely on public capital through IPOs. These shares not only raise money but also involve local investors in national infrastructure growth. With IPOs blocked, this partnership has been cut off.
The longer this situation lasts, the more damage it causes. Investors lose confidence. Projects slow down. Energy targets face delays. IPPAN has now appealed directly to the top, hoping Prime Minister Oli will take charge and find a solution.
Time is running out. Projects need money. Investors need clarity. The government must decide soon. Otherwise, Nepal’s hydropower dream could face long-term setbacks.
For more: Nepal Hydropower IPO Freeze Crisis
