SEBON Tightens IPO Rules: Hydropower Companies Must Start Power Production Before Share Issuance
The Securities Board of Nepal (SEBON) is introducing stricter rules for hydropower companies planning to issue Initial Public Offerings (IPOs).
From now on, only companies that have started commercial electricity production will be allowed to apply for IPO approval.SEBON has already removed several hydropower companies from its IPO pipeline list because they did not meet the required standards. One key rule is that companies must have a net worth of at least NPR 90 per share to be eligible for IPOs. This means companies with lower net worth will not be allowed to issue shares to the public.
Until now, many hydropower companies were raising money through IPOs during the construction phase. But under the new rule, only those companies that have started producing electricity (after achieving Commercial Operation Date, or COD) can apply for IPO approval.
Rule Change Based on Government Reform Plan
This change follows recommendations made by the High-Level Economic Reform Commission led by former Finance Secretary Rameshore Prasad Khanal. The government has already accepted the commission\\\