How to Apply for an IPO in Nepal – A Complete Step-by-Step Guide

How to Apply for an IPO in Nepal – A Complete Step-by-Step Guide

Investing in the stock market is one of the best ways to grow your wealth over time, and Initial Public Offerings (IPOs) provide a great opportunity for both new and experienced investors. In Nepal, IPOs have gained massive popularity due to the high chances of share allotment and the potential for good returns.

If you’re wondering how to apply for an IPO in Nepal, this guide will walk you through everything—from understanding what an IPO is to step-by-step instructions on how to apply. Whether you’re a beginner or looking for advanced tips, this article will cover all aspects in a simple, engaging, and informative manner.

What is an IPO?

An Initial Public Offering (IPO) is the process where a private company sells its shares to the public for the first time. When a company decides to go public, it issues shares to raise funds from investors. In return, investors get ownership in the company.

Why Do Companies Issue IPOs?

To raise capital for expansion and growth
To repay debts or improve infrastructure
To increase brand value and market presence

Why Should You Invest in IPOs?

✔️ Potential for High Returns – Many IPOs in Nepal have given investors significant profits after listing.
✔️ Low Investment Requirement – You can apply for an IPO with as little as Rs. 1,000 (10 shares).
✔️ Chance to Own a Part of a Growing Company – Investing early means you are part of a company’s growth journey.

Now that you understand the basics, let’s move on to the actual process of applying for an IPO in Nepal.

Step-by-Step Guide to Applying for an IPO in Nepal

Step 1: Open a Demat Account

A Demat (Dematerialized) account is essential to store your shares in electronic form. Without a Demat account, you cannot apply for an IPO.

How to Open a Demat Account?

Visit a bank or financial institution that provides Demat services (e.g., commercial banks, development banks, brokerage firms).
Fill out the Demat account opening form and submit a copy of your citizenship certificate and a passport-sized photo.
Pay a one-time registration fee of Rs. 50 – Rs. 150 and an annual maintenance fee of around Rs. 100.
You will receive a BOID (Beneficial Owner Identification Number) after account activation.

💡 Tip: Keep your BOID safe—it is required to apply for any IPO.

Step 2: Register for Mero Share

Mero Share is an online platform provided by CDSC (Central Depository System and Clearing Ltd.) that allows investors to apply for IPOs easily.

How to Get Mero Share Access?

After opening a Demat account, request Mero Share login credentials from your bank.
You’ll receive a username and password via email.
Visit www.meroshare.cdsc.com.np and log in.
Change your password and update your profile.

💡 Tip: Mero Share charges Rs. 50 – Rs. 100 per year for account maintenance.

Step 3: Check for Upcoming IPOs

Companies announce their IPOs through NEPSE (Nepal Stock Exchange), SEBON (Securities Board of Nepal), and financial news portals. You can also check:

The Mero Share “My ASBA” section for IPO announcements
Financial websites like Sharesansar, MeroLagani, and BizPati

Step 4: Apply for the IPO through Mero Share

Once you’ve selected an IPO, follow these steps:

Login to Mero Share
- Go to www.meroshare.cdsc.com.np and enter your credentials.
Select "My ASBA"
- Click on the “Apply for Issue” section to see the available IPOs.
Choose the IPO
- Click on the IPO you want to apply for and review the details.
Enter Share Quantity
- The minimum application is 10 shares, and the maximum varies based on the company's offering.
Enter Your CRN Number
- CRN (C-ASBA Registration Number) is provided by your bank when you enable C-ASBA services.
Agree to the Terms & Submit
- Click "Apply" and confirm your submission.

💡 Tip: Ensure your bank account has enough balance before applying. The IPO amount will be frozen in your bank account until the allotment process is completed.

How IPO Allotment Works in Nepal

IPOs in Nepal are allotted through a lucky draw system if there are more applications than available shares.

Here’s how it works:

If the demand is less than the supply, every applicant gets the requested number of shares.
If demand is higher, a lottery system is used, and only a limited number of investors receive shares.
SEBON has set a rule that if an IPO is oversubscribed, the minimum allocation is 10 shares per investor via a lucky draw.

For example, if 500,000 investors apply for an IPO but only 100,000 investors can be allotted, then only 100,000 lucky applicants will receive 10 shares each.

How to Check IPO Results in Nepal

After the IPO allotment, you can check if you got the shares by:

✔️ Mero Share (My ASBA → Application Report)
✔️ CDSC IPO Result Portal (iporesult.cdsc.com.np)
✔️ Company announcements on NEPSE or financial websites

If you are allotted shares, they will be credited to your Demat account. If you are not allotted, the blocked amount will be refunded to your bank account within a few days.

Final Thoughts

Applying for an IPO in Nepal is a simple yet rewarding process. With a basic understanding of how IPOs work, a Demat account, and Mero Share access, you can start investing in IPOs and grow your wealth.

Key Takeaways:

✅ IPO investments are low-risk and beginner-friendly.
✅ A Demat account and Mero Share login are mandatory to apply.
✅ Most IPOs are oversubscribed, so share allotment is based on a lottery system.
✅ Funds are frozen in your bank account until the allotment is complete.
✅ Regularly check NEPSE, SEBON, and financial websites for new IPO opportunities.

If you are new to investing, IPOs are a great way to start your journey in Nepal’s stock market. Keep an eye on upcoming IPOs, apply strategically, and over time, you can build a strong investment portfolio.

Do you have any questions about applying for an IPO in Nepal? Drop a comment below, and we’ll be happy to help!

FAQs (Frequently Asked Questions)

Q1. What is the minimum amount needed to apply for an IPO in Nepal?
The minimum investment is Rs. 1,000 (10 shares) per IPO application.

Q2. Can I apply for multiple IPOs at the same time?
Yes, you can apply for multiple IPOs if they are open during the same period.

Q3. What happens if I don’t get allotted shares?
Your money will be refunded automatically to your bank account within a few days.

Q4. How can I increase my chances of getting an IPO?
Since allotment is done via lottery, there is no guaranteed way to increase your chances except by applying with multiple family members.

By following these steps, you’ll be well on your way to securing IPO shares and making smart investment decisions! Happy investing!