Breaking a 170-Day Deadlock: SEBON Greenlights Him Parbat Hydropower’s Rs 591 Million IPO

KATHMANDU: Breaking a nearly six-month stagnation in Nepal’s primary stock market, the Securities Board of Nepal (SEBON) has finally resumed its public issuance approvals, granting permission to Him Parbat Hydropower Limited. This decision ends a 170-day regulatory drought, offering a glimmer of hope to dozens of companies whose initial public offering (IPO) files have been gathering dust at the regulator's desk.

The SEBON board of directors cleared the hydropower developer to issue 5.91 million ordinary shares, aiming to mobilize Rs 591.5 million from the public. Citizens Capital has been appointed as the issue and sales manager for the offering. The approval comes roughly 170 days after the company first submitted its application, underscoring the severe bottlenecks that have plagued the country's capital market regulator in recent months.

However, this solitary approval carries a strong interpretive message for the market: SEBON has become highly selective, prioritizing fundamental financial health and operational reality over mere proposals. Him Parbat managed to break through the regulatory gridlock specifically because it has already commenced electricity generation from its two key projects—the 5.5-megawatt Sagu Khola-1 and the 20-megawatt Sagu Khola hydropower plants.

More importantly, the company demonstrated a solid balance sheet, with a net worth per share exceeding the Rs 100 threshold. By clearing only Him Parbat, the regulator is signaling a clear shift in policy application: public funding will be facilitated primarily for hydropower companies that have successfully transitioned from the construction phase to the production phase, mitigating risks for everyday investors.

Despite the positive step for Him Parbat, the move highlights a stark contrast between the regulator’s public statements and its actual delivery. Recently, SEBON Chairman Dr. Gopal Prasad Bhatta had publicly assured investors that a significant batch of companies would receive IPO approvals by mid-autumn. Yet, when the board convened a day after his self-imposed deadline, only one company made the cut. Before this, the last approval was granted to Everest Color back in mid-April.

For Him Parbat Hydropower, the path is now clear. Upon payment of the registration fees stipulated by the Securities Registration and Issue Regulations, the board will grant its final authorization, allowing the company to open its share issuance to the public. For the rest of the corporate sector waiting in the pipeline, the message is equally clear: only those with active operations and robust financial metrics can expect to navigate SEBON's currently stringent vetting process.