Sagar Distillery Receives SEBON Approval To Issue 1.45 Million IPO Shares At Rs. 100 Each

29th July 2025, Kathmandu

Sagar Distillery Limited has achieved a significant milestone, receiving crucial regulatory approval from the Securities Board of Nepal (SEBON) for its highly anticipated Initial Public Offering (IPO). This pivotal approval, granted on July 28 (Shrawan 12), paves the way for the company to issue 1,452,000 ordinary shares to the general public, each at a face value of NPR 100.

Sagar Distillery IPO Approval

This strategic move marks Sagar Distillery’s official entry into Nepal’s burgeoning capital market. The company aims to raise NPR 145.2 million through this public offering, with the proceeds earmarked for essential business expansion initiatives and to bolster overall operational growth. Given the increasing investor appetite for manufacturing sector stocks on the Nepal Stock Exchange (NEPSE), the IPO is expected to garner substantial interest from both retail and institutional investors.

Key Details of Sagar Distillery’s IPO Offering

Under the terms meticulously outlined in the regulatory approval, Sagar Distillery will float a total of 1,452,000 units of ordinary shares. Each of these shares will be priced at NPR 100, adhering strictly to SEBON’s comprehensive regulations governing public issuances. To ensure a smooth and efficient offering process, Muktinath Capital Limited has been officially appointed as the issue manager for the IPO. Muktinath Capital, known for its expertise in managing public offerings, will oversee all aspects of the issuance, from pre-issue preparations to the final allotment.

The precise launch date for the IPO will be formally announced in the near future, following the completion of all necessary pre-issue procedures and regulatory filings. Once launched, prospective investors will have the convenience of applying for shares through CASBA (C-ASBA) supported banks and financial institutions located across Nepal. This widespread accessibility is designed to facilitate broad participation from the investing public.

A Strategic Leap Towards Market Expansion and Enhanced Governance

Sagar Distillery’s decision to go public is strategically timed, aligning with a notable upward trend of manufacturing companies in Nepal seeking to raise capital through public equity markets. The capital generated from this IPO is intended to be channeled into several key areas, including capacity enhancement to meet growing demand, strategic debt reduction to strengthen the company’s financial position, and overall business growth initiatives that will propel Sagar Distillery forward.

Beyond capital infusion, entering the stock market is a deliberate step by the company to significantly increase its transparency, enhance corporate governance practices, and broaden its ownership base. By becoming a publicly listed entity, Sagar Distillery commits to higher standards of financial reporting and accountability, fostering greater investor confidence.

Industry analysts are optimistic about the IPO’s prospects, anticipating high demand. This optimism stems from Nepal’s expanding interest in consumer goods manufacturing companies and the relatively attractive price point of NPR 100 per share. The company’s imminent entry into the NEPSE-listed ecosystem will create a valuable new opportunity for both small-scale and large-scale investors to diversify their portfolios and invest directly in a promising segment of the industrial sector.

Upholding Regulatory Compliance and Investor Transparency

The receipt of SEBON approval represents a critical achievement for Sagar Distillery, signifying the successful navigation of one of the most rigorous stages in Nepal’s IPO process. The company’s proactive decision to go public is well-aligned with the increasing investor demand for new and diverse investment avenues within the country’s dynamic equity market.

In line with SEBON’s stringent requirements, Sagar Distillery will publish a detailed prospectus prior to the issuance. This comprehensive document will provide potential investors with crucial information, including a thorough overview of the company’s historical financial performance, its robust business model, identified risk factors, and a precise outline of the intended use of the IPO proceeds. This commitment to transparency ensures that investors are well-informed, enabling them to make sound and educated investment decisions.

Fueling the Growing Trend of IPOs in Nepal

Sagar Distillery’s IPO approval is a notable addition to the expanding list of companies in Nepal choosing to raise capital through public markets in the fiscal year 2082. Bolstered by favorable government policies and a marked increase in investor awareness and participation, SEBON has observed a significant surge in IPO applications from firms spanning diverse sectors, including banking, hydropower, insurance, fintech, and, notably, manufacturing.

The entrance of Sagar Distillery into the public domain reflects a broader and encouraging momentum within the industrial sector. More and more industrial companies are embracing public financing as a powerful tool to fuel their growth and expansion plans, while simultaneously offering fresh and exciting avenues for public investment. This trend contributes to the deepening and diversification of Nepal’s capital market, benefiting both businesses and individual investors.

For More: Sagar Distillery IPO Approval