Nepal’s share market just witnessed something it has never seen before.
Shikhar Power Development Limited’s IPO closed on March 10 with 2,767,114 total applicants, the highest ever recorded for a single public issue in Nepal’s history. The final data came directly from CDS and Clearing Limited at 10:06 AM on March 11.
The numbers behind the record tell the full story. Investors applied for 30,746,740 units in total against just 1,842,600 units available for the general public. That puts the oversubscription at 16.68 times, higher than mid-closing estimates tracking around 15x.
Why Did This Many People Apply?
Hydropower IPOs have been pulling massive retail interest for months, but Shikhar Power caught a perfect wave. The IPO opened on March 1, right as Nepal’s post-election NEPSE rally was picking up steam. Entry was easy at Rs 1,000 minimum for 10 units, meaning hundreds of thousands of small investors joined purely for a lottery shot at listing gains. Hydropower stocks in Nepal have historically listed 50 to 150 percent above par value, and that track record brings people in every time.
Company Snapshot
Shikhar Power operates the 4.96 MW Bhim Khola Hydropower Project in Baglung, nearly at the commercial operations stage. IPO proceeds will fund the next phase, a 6.05 MW Lower Bhim Khola cascade project. The company has a Power Purchase Agreement secured with NEA and is rated BB- by ICRA Nepal, moderate risk with stable fundamentals.
The total issued capital stands at Rs 98 crore. Of the 32,00,000 units issued to the public, allocations went to project-affected locals of Baglung (9,80,000 units), NRNs abroad (2,22,000 units), company employees (44,400 units), and mutual funds (1,11,000 units). The remaining 18,42,600 units were open to the general public. Global IME Capital Limited managed the issue.
Lottery, Listing, and What Comes After
With 16.68x oversubscription, allotment goes to the lottery. Applicants who put in the minimum 10 units have slightly better odds since the system prioritizes smaller applicants over bulk bidders. Based on similar past IPOs with comparable oversubscription, small applicants typically face around 6 percent or less chance of full allotment.
SHPDL IPO allotment date has not been officially announced yet. Results will be visible on Meroshare and CDSC’s portal at cdsc.com.np once confirmed. Track the ipolist page on cdsc.com.np or your Meroshare account directly for updates.
Once listed on NEPSE, watch the floorsheet closely in the first few sessions. The BB- rating flags some project delay risk on the Bhim Khola timeline, but analysts have raised no major red flags on the fundamentals.
Nepal’s retail investors showed up in record numbers for this one. Now they wait.
Also Read: NEPSE Hits Back-to-Back Circuit Breakers as Post-Election Rally Shakes Market
