KATHMANDU, Nov 6: A total of 117 companies are awaiting approval from the Securities Board of Nepal (SEBON) to issue initial public offerings (IPOs), with 77 still at the initial application stage, as the regulator introduces a six-stage vetting process to make the approval system more transparent and systematic.
SEBON recently approved IPO applications from two companies—Kantipur Pharmaceuticals Lab Ltd and Ashutosh Energy Ltd—after prolonged delays.
Kantipur Pharmaceuticals received approval on Thursday to issue 1.7 million shares worth Rs170 million at a face value of Rs100 each. The issue represents 21.25 percent of the company's issued capital. It had applied for approval on February 19, 2025. Muktinath Capital Ltd is managing the issue.
Similarly, Ashutosh Energy received approval on Friday to issue 1.2 million shares worth Rs120 million at Rs100 per share, representing 20 percent of its issued capital. The company had submitted its application on May 21, 2024. NMB Capital is its issue manager.
According to SEBON records published on November 6, a total of 119 companies had applied to issue 509.32 million shares worth approximately Rs71.21 billion. Following the two approvals, 117 companies remain in the pipeline.
The SEBON's records show that 77 companies are at the first stage of the approval process, six at the second, four at the third, 20 at the fourth and 10 at the fifth. No companies currently remain at the sixth and final stage.
The 77 companies at the initial stage have proposed IPOs worth more than Rs 40.56 billion, accounting for approximately 57 percent of the total proposed issue amount.
SEBON faces backlog of IPO applications worth Rs 54.34 billion
Amid growing concerns over lengthy approval delays, SEBON has, for the first time, made public the procedural status of pending applications, allowing companies and other stakeholders to track their progress.
Under the new system, the SEBON has divided the approval process into six stages covering document submission, preliminary examination, observations, responses and final review. The classification is intended to make the process more transparent by showing where applications stand. However, the stages do not represent fixed processing timelines or guarantee approval.
SEBON officials say applications undergo detailed scrutiny by relevant branches, divisions and departments before being submitted for a final decision. They maintain that submitting an application and the required documents does not guarantee immediate approval, as each proposal must undergo a thorough review.
At the first stage, where applications have been received but a comprehensive review may not yet have begun, are Maruti Cements, Nepal Broadcasting Channel, Kailash Helicopter Services, Shivam Holdings, Chhaya Devi Complex, Riddhisiddhi Cement, Ambe Steels, Star Micro Insurance, Liberty Micro Life Insurance, Numbur Himalaya Hydropower, United Mewa Khola Hydropower, Medicare Hospital, Mewa Developers, Prabhu Helicopter, Mountain Glory, Myagdi Hydropower, LC Energy, Solar Farm and Jhyamolongma Hydropower Development Company.
Other applicants at this stage are Orbit Energy, Shiva Shankar Hydro Investment, Hulas Infra, Vision Energy and Power, White Lotus Power, Maulakali Cablecar, KB Agro and Research Company, Nivix Pharmaceuticals, Electro Power, Saarathi Cable Industries, Kabeli Hydropower, Nagarkot Resort, Hotel Sabrina, Swornim Hotel, Hulas Finserv Hire Purchase, Shree Airlines, Supreme Healthcare, Asian Batteries, Hulas Iron Industries, Doodhpokhari Chepe Hydropower, Hotel Ichchha, Athiti Resort and Spa, Asian Hotel, Hotel Park Land, Samyukta Urja, Global Hydropower Associate, Venture Hire Purchase, Pashupati Renewables, Eastern Sahara Company and Budhanilkantha Heritage.
The remaining companies at the first stage are Sabhapokhari Hydropower, National Bio Tech, Shanta Plywood, Bhagawati Steel Industries, Asian Concreto, Doleswor Village Resort and Farm House, KTM Hospitality, Rajesh Metal Crafts, Annapurna Machha Dana Udhyog, Yuwarani Agro Industries, Super Hewa Power, Raghuganga Hydropower, Premier Distillery, Indreni Mushroom Farm, Makarigad Hydropower, Team Ventures, Madhyapur Aspatal, Time Pharmaceuticals, Kalinchowk Investment, Nexgen Management and Equity Solutions, Baidik Investment Company, Saurya Krishi, Sasha Engineering Hydropower, Peace Energy Company, Unitech Hydropower, Hotel Siraichuli, Moonlight Hydropower and TenX Hydro Holding.
Six companies are at the second stage, where SEBON conducts preliminary examinations of applications, including assessments of financial condition, capital, income, net worth and compliance with legal requirements. They are Apex Makalu Hydropower, Gaurishankar Power Development, Shree Distillery, Akama Hotel, G.I. Solar and Varnabas Museum Hotel.
Four companies have reached the third stage, where the SEBON has sought clarifications or additional documents. They are Century Energy, Mahashakti Cement, Shubhashree Agni Cement Udhyog and Jasmine Paints.
At the fourth stage, where companies have submitted responses to the SEBON's observations, are 20 applicants: Dish Media Network, Apex Hospitality, Jagdamba Steels, HAMS Hospital, Shaurya Cement Industries, Barun Investment, Lower Erkhuwa Hydropower, Seed Energy, Laxmi Technoplast, Big Agro Group, Puwa Khola-One Hydropower, Nilgiri Khola Hydropower, Peoples Energy, Bhugarva Cement, Protective Micro Insurance, Champawati Hydropower, Thamel Plaza Hotel and Suites, Aarati Power Company, Daunne Agro Farm and Godawari Steel.
Ten companies are at the fifth stage, where SEBON reviews their responses, revised prospectuses and additional documents to determine whether they have addressed the board's observations and met regulatory requirements. They are Sanima Hydropower, IME, Richet Jalbidhyut, Annapurana Cable Car, Him River Power, Siuri Nyadi Power, Hilton Hydro Energy, Madame Khola Hydropower, Habitat Power and NC Agro Tech Industries. No companies currently remain at the sixth and final stage.
SEBON officials attribute approval delays to lengthy internal reviews, incomplete or inaccurate documents and slow responses from applicant companies. The board must verify companies' financial positions, liabilities and regulatory compliance, while issue managers are responsible for ensuring proper documentation and compliance reports.
Changes in a company's financial condition or management during the review process can further delay approval.
SEBON Chairman Dr Gopal Prasad Bhatt recently told the Finance Committee under the House of Representatives that a standard operating procedure (SOP) would establish clear responsibilities and processing timelines. The SOP has since been approved and is being informally implemented to improve accountability and prevent applications from getting stuck at different levels.
