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Demystifying IPOs in Nepal: How to Apply and What to Expect?

IPOs in Nepal are booming — but what exactly are they, and how can you invest? This blog breaks down the entire IPO process in Nepal, including how to apply, what to expect, and tips to boost your chances of allotment.

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Nepalytix
Demystifying IPOs in Nepal: How to Apply and What to Expect?

Introduction

Initial Public Offerings (IPOs) in Nepal have become one of the most popular entry points for new investors in the stock market. With record-high oversubscriptions and easy digital application processes, IPOs attract tens of thousands of retail investors every month.

But how do IPOs really work in Nepal? What are the steps to apply through MeroShare? And what should you expect after applying?

In this guide, we simplify everything you need to know about IPOs in Nepal — from account setup to allotment results — and help you make informed decisions as an investor.

1. What Is an IPO?

An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time. After the IPO, the company becomes publicly listed on NEPSE, and its shares can be traded.

In Nepal, IPOs are regulated by:

  • SEBON (Securities Board of Nepal)

  • CDSC (Central Depository System and Clearing Ltd)

  • NEPSE (Nepal Stock Exchange)

2. Why Are IPOs So Popular in Nepal?

  • Low entry barrier: You can apply with just NPR 1,000 (for 10 units).

  • High oversubscription: Popular IPOs are oversubscribed 20x to 100x.

  • Allotment chance: Lottery system allows small investors to receive shares.

  • Quick profit: Most IPOs list at a premium, giving investors early gains.

3. Documents You Need to Apply for an IPO in Nepal

Before you can apply for an IPO, you must have:

  1. Demat Account – To hold your shares in electronic form.

  2. MeroShare Login – For online IPO application and share transfers.

  3. CRN Number – Issued by your bank when linking it to your Demat account.

  4. Bank Account – To block funds during IPO application.

If you don’t have these, you can set them up through any bank or brokerage firm.

4. How to Apply for an IPO Through MeroShare (Step-by-Step)

  1. Log in to your MeroShare account.

  2. Click on “My ASBA” on the left menu.

  3. Select “Current Issue” to see active IPOs.

  4. Click “Apply” next to the company you’re interested in.

  5. Enter the number of shares (typically 10 units minimum).

  6. Enter your CRN number and submit.

  7. Confirm your application.

Once submitted, the amount will be blocked in your bank account until allotment day.

5. What Happens After You Apply for an IPO?

a. Funds Are Blocked

The amount you applied for is kept on hold (not withdrawn yet).

b. IPO Closes

Applications are collected, usually within 3–5 days.

c. Allotment Day

  • A computerized lottery system randomly allots shares.

  • Results are published on:

d. Refunds

If you don’t get shares, the blocked amount is released within 3–5 working days.

6. IPO Listing on NEPSE

After allotment, the company gets listed on NEPSE within 15–45 days.

  • On listing day, the stock price often jumps due to demand.

  • You can sell your IPO shares through your broker using the NEPSE TMS system.

7. Tips to Improve IPO Allotment Chances

With thousands of people applying for IPOs, getting allotted shares has become a matter of luck. However, here are some strategies that may help:

  • Apply for the minimum 10 units to stay eligible for the lottery.

  • Use multiple family Demat accounts (with different CRNs and KYC).

  • Avoid applying last minute, as server issues may occur.

  • Make sure your CRN and bank linkage is active before applying.

8. Types of IPOs in Nepal

Type

Description

General Public

Open to all eligible retail investors

Local Residents

Offered to residents of affected project areas

Employees

Reserved for company staff

Mutual Funds

Reserved for listed mutual fund schemes

Pro Tip: Always check the share allocation breakdown in the IPO prospectus.

9. Where to Track Upcoming IPOs?

Keep an eye on upcoming IPOs using:

  • MeroLagani IPO Calendar

  • ShareSansar IPO Updates

  • CDSC Notices

  • SEBON Website

These platforms provide IPO dates, issue size, and company background.

10. Risks of Investing in IPOs

While IPOs in Nepal are often profitable, they carry some risks:

  • Not all IPOs list at a premium

  • Companies in pre-operational phases may have no income for years

  • Market corrections can affect listing gains

Always read the IPO prospectus and understand the company’s business model before applying.

Conclusion

IPOs are a great way to start your investment journey in Nepal. They are affordable, accessible, and — when chosen wisely — can generate quick returns. However, always balance enthusiasm with due diligence.

Whether you're applying through MeroShare or evaluating your first IPO, use this guide to invest smarter and avoid common pitfalls.