How to Apply for an IPO in Nepal?

What is the Initial Public Offering (IPO)?

An Initial Public Offering (IPO) is the process by which a company raises capital by issuing shares to the public. It is the first time a company issues shares to the public, and it allows the company to raise funds for growth, expansion, and other business activities. IPOs are typically used by companies that are looking to raise significant amounts of capital and want to increase their visibility and credibility.

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In an IPO, a company offers a certain number of shares to the public at a fixed price. The shares are then listed on a stock exchange, such as the Nepal Stock Exchange (NSE), and can be bought and sold by investors. Once the shares are listed, the company's stock can be traded on the open market, and the value of the shares will fluctuate based on supply and demand.

IPOs are usually underwritten by investment banks, which guarantee the sale of a certain number of shares at a specific price. This process is called underwriting. The investment bank will typically charge a fee for this service, which is usually a percentage of the total amount raised. IPOs are a complex process, and companies typically hire legal and financial advisors to help them navigate the process. It's also important to note that, IPO process is highly regulated by the securities exchange board of Nepal (SEBON) and Nepal Stock Exchange (NSE).

How to apply IPO (Initial Public Offering) in Nepal?

How to Apply for an IPO in Nepal?

An Initial Public Offering (IPO) is the process by which a company raises capital by issuing shares to the public. First you need these account to apply IPO in Nepal.

  1. Bank Account
  2. DEMAT Account
  3. Mero Share Account

To apply for an IPO in Nepal, you will need to follow these steps:

  • Check the Nepal Stock Exchange (NSE) website or the website of the issuing company for information on the IPO. This will include the dates of the issue, the number of shares being offered, and the price of the shares.
  • Visit the website of the Depository Participant (DP) or the Mero Share website, where you have opened your DEMAT account and IPO application process is usually done online.
  • Fill out the IPO application form with the required details, including the number of shares you wish to purchase and the payment method.
  • Submit the application form along with the necessary documents, such as a copy of your government-issued ID and proof of address.
  • Once the application is accepted, the shares will be credited to your DEMAT account after the allotment process.
  • You can then sell or hold the shares as per your choice.
It's worth to note that, IPO application process in Nepal is usually done through the online portals of Depository Participant or Mero Share.

How to open bank account in Nepal?

First of all you need to bank account for apply IPO in Nepal. To open a bank account in Nepal, you will need to visit a local bank branch and provide the following documents:
  • A valid government-issued ID (such as a passport or national ID card)
  • Proof of address (such as a utility bill or lease agreement)
  • A recent passport-sized photo
  • PAN Card (varies depending on the bank)
  • Initial deposit (varies depending on the bank)
You will also need to fill out a bank account application form, which can typically be obtained at the bank branch or online. The bank representative will assist you with the process and provide information on the specific requirements and documentation needed.

How to open DEMAT account in Nepal?

You must need DDEMAT account for apply IPO in Nepal. A DEMAT account is an account that holds securities such as shares, bonds, and mutual funds in an electronic format. To open a DEMAT account in Nepal, you will need to follow these steps:
  • Choose a Depository Participant (DP): You will need to select a Depository Participant (DP) from the list of authorized DP's provided by Central Depository System of Nepal Limited (CDSNL). You can find the list of authorized DP's from their website.
  • Submit the required documents: You will need to provide the following documents to the DP:
        - A valid government-issued ID, such as a passport or a Nepali citizenship certificate
        - Proof of address, such as a utility bill or a lease agreement
        - PAN card (Optional)
        - Recent passport-sized photos
  • Fill out the application form: You will need to fill out an application form provided by the DP, which will ask for information such as your contact details and bank account information.
  • Complete the account opening process: After submitting the required documents and application form, the DP will verify the information and complete the account opening process. Once the account is open, you will be provided with a client ID and a password to access your account.
It's recommended that you visit the DP office in person for the opening of the account. And also, you need to complete the KYC documentation process.

How to open Mero Share Account in Nepal?

You must need Mero Share Account for Apply IPO in Nepal. Mero Share is an online platform for buying and selling shares of companies listed on the Nepal Stock Exchange (NSE). To open a Mero Share account in Nepal, you will need to follow these steps:

  • Visit the Mero Share website and register for an account by providing your personal and contact information.
  • You will then receive an email with a verification link. Click on the link to verify your email address.
  • Login to your account and complete the KYC (Know Your Customer) process. This will require you to upload a copy of your government-issued ID, proof of address, and a recent passport-sized photo.
  • After the KYC is verified, you will be able to deposit funds into your Mero Share account using eSewa, IME Pay, or Khalti.
  • Once the funds are deposited, you can start buying and selling shares on the NSE through the Mero Share platform.

It's worth to note that, currently Mero Share is the only company which has permission to operate online share trading in Nepal and it's also the subsidiary of Nepal Stock Exchange. If you applying for IPO after publish results you can check the results.

You learned now, how to apply for an IPO in Nepal with our step-by-step guide. Our comprehensive tutorial covers everything you need to know to successfully invest in an IPO in Nepal. Start investing in your future today!

Hitraj Sanjyal

Hitraj Sanjyal is a passionate blogger and educator based in Nepal. With a keen interest in government job exams and educational advancement, Hitraj aims to provide valuable information and resources to his readers. facebook instagram twitter youtube

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