15th September 2025, Kathmandu
Sagar Distillery Limited has officially opened its Initial Public Offering (IPO) to the general public, with applications beginning today, September 15, 2025 (Bhadra 30, 2082).
Sagar Distillery Opens IPO
The offering, which was briefly postponed due to recent nationwide disruptions, marks a significant step for the company in raising capital and expanding public ownership.
IPO and Allocation Details
Sagar Distillery is issuing a total of 1,452,000 shares to the public, each with a face value of NPR 100. This represents 20% of the company’s total paid-up capital of NPR 72.60 crore. The total value of this public issue is NPR 14.52 crore. The IPO is being managed by Muktinath Capital Limited.
The total shares have been divided into specific allocations to ensure a fair and equitable distribution among different investor groups, as per regulatory guidelines. The breakdown is as follows:
Foreign-employed Nepalis: A total of 145,200 shares have already been allotted to Nepalis working abroad. This is part of a regulatory effort to encourage participation from this vital demographic, which contributes significantly to the national economy through remittances.
Mutual Funds: A total of 72,600 shares have also been pre-allotted to mutual funds, providing institutional investors with an opportunity to participate.
Company Employees: 43,560 shares have been reserved for the company’s own employees, allowing them to have a stake in the business and aligning their interests with those of the shareholders.
General Public: The remaining 1,190,640 shares are now available for application by the general public. This is the main tranche of the IPO and is expected to attract significant investor interest.
Application Window and Process
The application window for the general public has officially opened today, Bhadra 30, 2082 (September 15, 2025). Investors are advised to act swiftly as the issue has an early closing date. The offering will close on September 18, 2025 (Ashoj 2, 2082) if it is fully subscribed within that period. If not, the application period will be extended until September 29, 2025 (Ashoj 13, 2082), to ensure full subscription. All applications must be made during regular banking hours.
Investors can apply for the IPO using the Centralized Applications Supported by Blocked Amount (C-ASBA) system. This can be done through a number of convenient channels:
Banks and Financial Institutions: Investors can visit a bank or financial institution that provides C-ASBA services.
Designated Branch Offices: Applications can also be submitted at the designated branch offices of these institutions.
Mero Share Online Portal: For a seamless and quick process, investors can apply through the Mero Share online portal, a popular platform for managing stock market investments in Nepal.
Investor Considerations
Sagar Distillery Limited is a company in the manufacturing and processing sector, specializing in the production of various alcoholic beverages. The company’s IPO is rated as IRN B+ (Issuer) by Infomerics Credit Rating Nepal, which indicates a high risk of being unable to meet financial obligations on time. This is a crucial factor for investors to consider, as it highlights a certain level of vulnerability to adverse economic conditions.
However, the company’s business is in a sector that is generally resilient and has a steady consumer base. The proceeds from the IPO are expected to be used for the company’s growth and expansion plans, which could lead to potential long-term value for investors. Given the historical trend of high oversubscription for IPOs in Nepal, it is highly likely that this offering will be oversubscribed, making the early application date a critical one for investors. The successful listing and trading of the shares on the Nepal Stock Exchange (NEPSE) will further add to the liquidity and market capitalization of the Nepali stock market.
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