SEBON Classifies 117 IPO Applications into Six Stages, Rs 71.42 Billion in Pipeline

The Securities Board of Nepal (SEBON) has introduced a six-stage classification system for IPO applications for the first time, providing a clearer picture of the approval process. According to the board’s latest update, 117 companies have IPO applications worth more than Rs 71.42 billion under review, covering a total of 510,981,946 shares. The six stages range from application receipt and preliminary review to the submission of queries, receipt of responses, review of those responses, and final review. Of the total applicants, two companies have reached the final review stage, while 10 companies are undergoing the fifth-stage review. Two Companies Reach Final Review According to SEBON, Ashutosh Energy Limited and Kantipur Pharmaceuticals Lab Limited have reached the sixth and final review stage. The two companies have applied to issue a combined 2.9 million shares. Ashutosh Energy has applied to issue 1.2 million shares, with NMB Capital serving as its issue manager. Kantipur Pharmaceuticals Lab has applied to issue 1.7 million shares, with Muktinath Capital as its issue manager. However, reaching the final review stage does not guarantee IPO approval. SEBON must complete its examination of the required documents, financial statements and regulatory requirements before making an approval decision. Ten Companies Under Fifth-Stage Review Ten companies are currently in the fifth stage, where their responses to SEBON’s queries and revised documents are being reviewed. These include NC Agrotech Industries, Sanima Hydropower, IME Limited and Siuri Nyadi Power. The companies have collectively applied to issue 51.9 million shares. Their applications will proceed further only after the board completes its review and determines the next steps. Meanwhile, 19 companies are in the fourth stage after submitting responses to queries raised by the board. These include Dish Media Network, Jagdamba Steels, Saurya Cement and HAMS Hospital. The companies have applied to issue a combined 119.88 million shares. Four Companies in the Third Stage Four companies are in the third stage, where SEBON has requested corrections, clarifications or additional information. They are Mahashakti Cement, Shubhashree Agni Cement, Jasmine Paints and Laxmi Technoplast. Their applications will progress once the required clarifications and supporting documents have been reviewed. 82 Companies Remain in the Initial Stages The largest group comprises 76 companies whose applications have been received but have not progressed beyond the first stage. These include Maruti Cement, Ambe Steels and Riddhisiddhi Cement. Together, they have applied to issue 280.82 million shares. Another six companies are in the second stage, where preliminary reviews are underway. These include Akama Hotel and Apex Makalu Hydropower. Combined, 82 companies remain in the first and second stages, indicating that most applications are still in the early phases of the approval process. Regulatory Compliance Determines Approval SEBON reviews companies’ submitted documents, financial statements, prospectuses and compliance with applicable laws and regulatory standards before granting permission to issue shares. The board is also examining companies’ latest net worth per share. In the case of hydropower companies, the commercial operation date (COD)—the date commercial production begins—is also subject to review. With 117 companies seeking approval for IPOs worth more than Rs 71.42 billion, the six-stage classification offers a clearer overview of the status of applications. While two companies have reached the final review stage and 10 are in the preceding stage, the timing and outcome of approvals will depend on document verification, regulatory compliance and SEBON’s final decisions.