Lucrative Upcoming IPO’s in Nepal

Lucrative Upcoming IPO’s in Nepal

“An IPO is not the end but actually the beginning”

For those who don’t know what an IPO is, in simple terms, it is the first share distributed by a company to the public. If we are to be more specific, IPO or Initial Public Offering is the process of offering shares of a private corporation to the public in a new stock issuance. This public share allows the company to raise capital from public investors while at the same time allowing the public to invest in a company with virtually no risks involved.

If you are here, you probably are interested in the upcoming IPO’s. But before we go there, let’s revise some basics.

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The Process of Applying for an IPO

Lucrative Upcoming IPO’s in Nepal

Now that we know what an IPO is a lot of you must be wondering how can we apply for it. But before you apply for IPO you need to have a DEMAT account. DEMAT account or Dematerizliaed is an account that is used to hold dematerialized shares that makes share trade easy for the users. After making this DEMAT account, you then have to Open a Mero Share account. After that, you can log in to the Mero share and apply for the IPO.

The complete steps for Applying for an IPO are:

  • Create a DEMAT Account 
    • Fill up the DEMAT account form
    • Submit the form
    • Verify your DEMAT account 
  • Create Mero Share Account
    • Apply a form for CRN number at the bank where you registered your DEMAT account
    • Go to Mero Share web portal of CDSC 
    • Fill up the form using your Email, Phone number, DPID, and Client ID
    • Set up password and Pin
  • Apply for IPO
    • Log in to Mero Share Web Portal
    • Go to my ASBA
    • Click on Apply
    • Click on the Company whose IPO you want to Buy
    • Fill up the forms.

Once you complete all of these steps, you will be included on the list of investors for the IPO of the company you registered for. If you are a beginner, it may take a while for you to do all of this but once you are done, you can invest whenever you want using the Mero Share web portal. 

The Benefits of Applying for IPO 

Lucrative Upcoming IPO’s in Nepal

If you are thinking about why should you invest in an IPO account, it is because IPO is the safest place to invest in the share market and the easiest as well. 

Easy to Start

All you need is a DEMAT and a Mero Share account and you are good to apply for an IPO. Furthermore, once you have these two accounts, you can invest anytime and for as long as you want. 

It’s Cheap

The next benefit is that you don’t have to invest a lot of money in this. The IPO’s issues at the rate of Rs 100 per unit. You can apply for an IPO at the rate of Rs 10 per unit for 1000 Unit but in this case, there is a high chance of being oversubscribed and only getting 10 units which are Rs 100.

Low Risk, High Return

The best benefit is that you don’t invest much – around Rs 1000 and the chances of getting an IPO are rather good. Once you get an IPO your value may increase up to 1500 just from investing Rs 100. While your value can decrease since you don’t invest much anyways, there is less risk of a loss. 

With this being said, a lot of you might be willing to invest in the upcoming IPO’s. 

Upcoming IPO’s of 2021

Lucrative Upcoming IPO’s in Nepal
Image Source: ShareSangsar

As of July 25, there are a few upcoming IPO’s. Out of the many that are said to arrive in the year 2021, IPO’s of companies like Jeevan Bikash Laghubitta Bittiya Sanstha Ltd and Manakamana Smart Laghubitta Bittiya Sanstha have already been Issued and closed. 

However, while the application for the IPO’s of these companies has closed, there are many more that are not yet closed. These IPO’s that have not been closed yet are shown in the table below:

Company NameUnitsPriceDate
Malung Khola Jal Vidyut Company Ltd7,36,286Rs. 100021-07-29 to 021-08-02
Samling Power Company Limited12,30,000Rs. 100N/A 
Sanima Life Insurance Company Limited60,00,000Rs. 100N/A
Manushi Lagubitta Bittiya Sanstna Limited3,93,750Rs 100N/A
Terhathum Power Company Limited8,00,000Rs 100N/A
Madhya Bhotekoshi Jalavidyut Company Limited90,00,000Rs 100N/A

This is the list of the upcoming IPO’s with allotment units and price per unit. So far the only date that has been announced is of Malung Khola Jal Vidyut Company Ltd. You can apply for the IPO of this company from 29th of July to 12th of August. As for the rest of the upcoming IPO’s, although the numbers of available units and their price have been announced, the date of allotment remains to be announced. 

Note in the above table N/A stands for Not announced.

So, what are you waiting for? Aren’t you going to apply for an IPO?

Hope that this was helpful for you. And as always thank you for reading till the end. If you have any suggestions for us, do leave them down in the comments below. For detailed information about IPO, you can click on the first two links down below.

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