14 Companies Rejected from IPO Pipeline, Over NPR 4.21 Billion Worth of Issuances in Limbo

Kathmandu – The Securities Board of Nepal (SEBON) has rejected IPO applications from 14 companies that were in the pipeline for public issuance. This last-minute decision has put IPOs worth NPR 4.21 billion into uncertainty.

Among the rejected companies are 6 hydropower firms, 2 pharmaceutical companies, 4 from the tourism sector, one media house, and one helicopter service company. The companies include Apex Hospitality, Orchid Holdings, Annapurna Cable Car, Thamel Plaza Hotel & Suites, Sanima Hydropower, Richet Hydropower, Beni Hydropower, Laughing Buddha Power, Unique Hydel, Puwa Khola One Hydropower, Accord Pharmaceuticals, Sopan Pharmaceuticals, Kantipur Television, and Prabhu Helicopter.

According to SEBON, 13 of these companies have a net worth per share of less than NPR 90, which disqualifies them from issuing IPOs under current regulations. One company had a Power Purchase Agreement (PPA) valid for only 5 years, which SEBON deemed insufficient for long-term financial sustainability.

As per regulatory guidelines, a minimum net worth of NPR 90 per share is mandatory to qualify for public issuance. SEBON has also sent official correspondence to these companies advising them to reapply with updated financials proving a per-share net worth above the threshold.

This action follows earlier directives from the Public Accounts Committee of Parliament, which had instructed SEBON not to allow IPOs from companies with net worth below the NPR 90 mark.

The board’s decision has disappointed investors who were expecting these companies to enter the primary market soon. Until these companies improve their financial health and resubmit valid documentation, their IPOs will remain suspended.