Everything You Need to Know About (IPO) Initial Public Offering in Nepal

What is IPO and How to Apply Online From Mero Share

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IPO stands for Initial Public Offering. A public company can issue an IPO to the general public to collect the money. The money is raised from the general public as an equity fund. The company can use this money for various purposes such as the expansion of the business, paying off debt, etc.

How much is the Price of IPO shares?

In the context of Nepal, the face value (par value) of the IPO for common stock is rs. 1oo. Likewise, the par value of the debenture is rs. 1000 and par value of the mutual fund is rs. 10.

Will I get my money back if the IPO is not allotted?

Yes, Beneficiary Owner’s money will be refunded back to a bank account if IPO is not alloted. It takes a few days to refund the bank depending upon the bank’s system.

How can I apply for an IPO in Nepal? 

There are two ways you can apply for an IPO in Nepal.

  1. Through Mero Share apps/website
  2. By physically submitting the form to the bank

Things you need to apply for an IPO from the bank.

  • CRN Number
  • BOID Number
  • Bank Account Number

Is an IPO risky?

No really, buying shares in an IPO is comparatively less risky than buying shares in the secondary market. However, the individual investors must study the fundamental base of the company before applying for an IPO. Investors can also check the IPO grading before applying for it. In Nepal, there are two companies for IPO and company rating, they are ICRA Nepal and Care Ratings Nepal.

What is the meaning of IPO rating?

For IPO Gradings, the factors analyzed include, among others, the prospects of the industry in which the company operates, its competitive strengths, and its financial position. The rating tells individuals whether or not the company is strong enough to fulfill its liability towards investors.

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