Deep Dive: Upcoming IPOs in Nepal (Bhujung, Solu, Salapa, Reliance) - Dates, Price, Analysis

Upcoming IPOs in Nepal - Researched Overview and Investor Guide

Nepal's IPO pipeline has been active through late 2025, with several companies receiving formal approvals from the Securities Board of Nepal (SEBON). This article synthesizes SEBON filings, press releases and market reporting to give investors a clear, sourced view of four IPOs that deserve attention right now: Bhujung Hydropower Limited (BJHL), Solu Hydropower Limited (SHPL), Salapa Bikas Bank Limited (SALAPA) and Reliance Spinning Mills (RSM).

For each company we summarize the approved offer, the issue manager, the sector context, likely investor considerations and where to check official documents.

Track live market updates and IPO performance on NepaliShareMarket.com

Quick Facts (Approved IPOs and Issue Managers)

Each of the above approvals and numbers are recorded in SEBON notices and the market press. The approval means SEBON has accepted a company's prospectus/documentation to move to the public offer stage.

What the SEBON Approvals Mean

SEBON's approval of an IPO proposal signals the regulator has accepted a company's prospectus/documentation to move to the public offer stage. Approval typically includes:

• Number of units permitted for public offering
• Face value or floor price (for general/local issues)
• Designated issue manager(s)
• Regulatory compliance requirements

Investors should always download the company's prospectus (bibaranpatra) and the SEBON approval PDF before applying. The prospectus contains critical items:

• Use of proceeds
• Paid-up capital structure
• Promoters' shareholding
• Audited financial statements
• Risk disclosures

SEBON uploads these approval notices as PDFs on its website and many NEPSE/market portals mirror the documents.

Company-by-Company Analysis & Investor Considerations

1. Bhujung Hydropower Limited (BJHL) - Small Hydropower IPO

What We Know (Approved)

• Total Units: 2,000,000 shares
• Issue Price: Rs. 100 per share
• Total Issue Amount: Rs. 20 Crores
• Issue Manager: Kumari Capital Ltd
• SEBON Approval: Published November 2025
• Project: Upper Midim Hydropower (7.5 MW)
• Location: Lamjung District

Sector Context & Investor Note

Hydropower IPOs in Nepal have historically attracted strong retail interest due to relatively low nominal issue prices (Rs. 100 face value) and strong local narratives around renewable energy. However, hydropower investments require careful read of:

• Project status (construction/operation)
• Power Purchase Agreement (PPA) contracts
• Cash flow timelines
• Construction risks
• Credit rating (ICRA Nepal recently downgraded BJHL to B-)

Important Note: ICRA Nepal has downgraded Bhujung Hydropower from B+ to B-, indicating high risk and significant concerns about the company's ability to meet financial obligations. Conservative investors should exercise caution.

For a small IPO like Bhujung, allocation to retail investors may be limited. Check the prospectus for any local/general-public split and project-financing timelines before deciding.

2. Solu Hydropower Limited (SHPL) - Much Larger Offering

What We Know (Approved)

• Total Units: 20,000,000 shares
• Issue Price: Rs. 100 per share
• Total Issue Amount: Rs. 200 Crores
• Issue Manager: Nabil Investment Banking Ltd (and co-managers)
• SEBON Approval: Documented and approved

Sector Context & Investor Note

This is a materially larger capital raise compared with many recent hydro IPOs. Large-scale hydropower IPOs tend to interest both retail and institutional buyers. Key diligence points:

• Estimated capacity (MW)
• Status of civil works and electromechanical contracts
• Long-term Power Purchase Agreements (PPAs) for domestic supply or export
• Debt position and timeline to commercial operation
• Project location and environmental impact assessments

Past large hydro listings have varied in initial listing returns. Many generate oversubscription and speculative trading but long-term returns depend on project execution. All critical details will be in the prospectus.

3. Salapa Bikas Bank Limited (SALAPA) - Regional Banking Play

What We Know (Approved)

• Total Units: 1,723,880 shares
• Issue Price: Rs. 100 per share
• Total Issue Amount: Rs. 17.24 Crores
• Issue Manager: Muktinath Capital Ltd
• SEBON Approval: Approved by SEBON

Sector Context & Investor Note

Development banks occupy an important niche in Nepal's financial system. For bank IPOs, examine:

• Capital adequacy ratios (CAR)
• Non-Performing Loan (NPL) levels
• Branch network growth and geographic coverage
• Return on Assets (ROA) and Return on Equity (ROE)
• Regulatory compliance with Nepal Rastra Bank directives
• Deposit base and loan portfolio composition

Compared to hydropower, bank IPOs can offer steadier earnings but are sensitive to:

• Sector-level regulation and merger policies
• Macroeconomic credit cycles
• Interest rate environment
• Competition from commercial banks and microfinance

The prospectus will have audited financial statements that are essential reading before applying.

4. Reliance Spinning Mills (RSM) - Premium, Book-Built Issue

What We Know (Approved/Historical)

• Total Units: 1,155,960 shares
• Bid/Issue Price: Rs. 820.80 per share (book-building/premium issuance)
• Total Issue Amount: Rs. 94.87 Crores
• Issue Manager: Global IME Capital Ltd
• SEBON Status: Approval granted (had earlier regulatory developments/clarifications)

Sector Context & Investor Note

This is a premium offer (not the typical Rs. 100 face-value offering). Textile/manufacturing issuers priced at a premium usually point to:

• Established revenue and profit history
• Operating track record
• Existing production capacity and utilization
• Market positioning and brand value

Important: Premium issues require extra care on valuation metrics. Compare:

• Price-to-Earnings (P/E) ratio with listed peers
• Price-to-Book (P/B) value
• Earnings growth trajectory
• Industry fundamentals and export potential

The IPO had earlier regulatory developments (suspension/clarification) but recent press shows regulatory clearance and institutional tranche activity. Institutional bids were reportedly higher than the retail floor in earlier rounds.

If you consider RSM, review carefully:

• Audited profit & loss statements
• Order book and customer base
• Export contracts (if any)
• Management quality and corporate governance
• Working capital management

Market Context - Why Hydropower & Regional Banks Remain Popular in 2025

Nepal's IPO wave through 2024-2025 has been driven largely by hydropower projects and small financial institutions. Key factors:

Hydropower Sector

• Structural story driven by growing domestic demand
• Export potential to India and Bangladesh
• Government focus on renewable energy
• Attractive narrative for retail investors
• Low nominal issue prices (Rs. 100 face value)

Banking Sector

• Development banks seeking capital for expansion
• Merger and consolidation trends
• Reach to underbanked rural areas
• Stable earnings compared to project-based businesses

Retail Participation Trends

Retail investor participation has been intense. Many hydro IPOs showed very high oversubscription rates and early listing premiums in recent cycles. However:

• Individual investor outcomes depend on allocation rules
• "Gola"/lottery mechanism used for allotment
• High initial enthusiasm doesn't guarantee returns
• Project execution risks remain

Always treat high initial enthusiasm cautiously and read the prospectus first.

Monitor live market sentiment and IPO sector performance on NepaliShareMarket.com

Practical Steps for Retail Investors (Checklist)

Step 1: Read the Prospectus (Bibaranpatra)

Available from:

• Company's official website
• Issue manager's website
• SEBON website (approval PDFs)

The prospectus contains:

• Audited financial statements (at least 3 years)
• Promoter holdings and management team
• Capital structure and dilution impact
• Use of proceeds (where IPO money will be used)
• Risk factors (industry, operational, regulatory)
• Legal proceedings (if any)

Step 2: Confirm Issue Dates and Categories

SEBON approvals and company notices specify:

• IPO opening and closing dates
• General public allocation
• Local people (project-affected areas)
• Foreign-employed Nepali citizens
• Mutual funds
• Company employees

Step 3: Use Only Authorized Channels to Apply

• MeroShare: Primary online application platform
• CDSC/IPO Result Portal: Official allotment checking
• Bank/Issue Manager Forms: For offline applications

Step 4: Decide Allocation Strategy

• Small investors often apply for minimum units to obtain lottery allocation
• Larger subscriptions raise exposure but don't guarantee allocation
• Consider diversification across multiple IPOs

Step 5: Consider Risk & Investment Horizon

• Hydropower: Often long-term with construction risk, seasonal cash flows
• Banks: Sensitive to NPLs, regulation, and economic cycles
• Premium IPOs: Require valuation discipline and peer comparison
• Credit Ratings: Check ICRA Nepal or other rating agencies

Where to Follow Updates and Official Documents

Official Sources

• SEBON Website: Official approval PDFs and notices (search by company name)
• Company Websites/IPO Notice Pages: Prospectus and application forms
• Issue Manager Websites: Application guidelines and schedules
• CDSC & MeroShare: Allotment and final listing information

Market Information Portals

• NepaliShareMarket.com: Live market data, IPO tracking, and analysis
• ShareSansar, Merolagani, ShareHub: Timely summaries (always cross-check with SEBON/company documents)

Key Takeaways for Investors

Final Takeaway

SEBON's late-2025 approvals for Bhujung, Solu, Salapa and Reliance add important supply to Nepal's IPO calendar. Each issue has a different risk/reward profile:

• Hydropower (BJHL, SHPL): May draw speculative retail interest and long-term project exposure, but carry construction and operational risks
• Salapa: Offers a banking play with potentially steadier earnings, subject to regulatory and credit risks
• Reliance: Premium, book-built manufacturing offer requiring valuation discipline and peer comparison

For any application:

1. Read the prospectus carefully
2. Confirm the investor category you qualify for
3. Apply through official channels (MeroShare, authorized banks)
4. Consider your risk tolerance and investment horizon
5. Don't invest more than you can afford to lose

Stay updated with live IPO tracking and market analysis on NepaliShareMarket.com

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial advice or a recommendation to invest in any particular security. IPO investments carry risks including potential loss of principal. Credit ratings, company performance, and market conditions can change. Always conduct your own research, read the prospectus, and consult with a qualified financial advisor before making investment decisions. Past performance of IPOs does not guarantee future results.