आइपीओको भीड, लाभांश दिने कम्पनी १४ प्रतिशत मात्रैIPO Rush Grows, but Only 14 Percent of Companies Declare Dividends

KATHMANDU — The number of companies seeking to raise capital through initial public offerings (IPOs) is rising rapidly, but the ability of many of them to provide returns to shareholders appears limited. Of around 150 companies that moved IPO proposals through annual or special general meetings in fiscal year 2082/83, only 21 declared dividends.

The figure represents roughly 14 percent of the total, meaning about 86 percent of the companies did not announce any dividend. Although dividend distribution is not a mandatory condition for launching an IPO, profitability, financial strength and the capacity to provide returns remain important indicators for investors.

Among the companies that declared dividends, Professional Holdings proposed the highest return at 52.63 percent, followed by Norvic International Hospital and Medical College at 40.21 percent. Century Energy announced a 35 percent dividend, Highland Distillery 26.31 percent and Fonepay Payment Service 19 percent.

Banking Finance and Insurance Institute of Nepal declared a 14.73 percent dividend, while Venture Hire Purchase announced 10 percent, Sumeru Polymers 9.02 percent and Business Interest Group of Industries 6.32 percent. Several other companies have announced dividends without specifying the exact rate.

The flow of companies preparing for public offerings has continued into the new fiscal year. Within the first eight days, HAMS Hospital, Gemini Recycle, Greenply Nepal and Makalu Wine Industries had already called general or special general meetings with IPO-related agendas.

Some companies that secured shareholder approval for IPOs last year have already completed their public issues, while many others remain in the approval process. More than 100 companies are currently seeking IPO permission from the Securities Board of Nepal, while others are moving ahead by appointing issue managers and completing preliminary requirements.

The growing number of IPO aspirants is also shifting attention from the quantity of new listings to their quality. The absence of dividends alone does not necessarily indicate a weak company, particularly for firms that are reinvesting profits for expansion. However, consistently weak profitability, poor financial fundamentals and limited capacity to generate shareholder returns can increase risks for public investors.

As more companies seek access to public money, closer scrutiny of their capital structure, earnings performance, business sustainability and corporate governance will become increasingly important. The quality of companies entering the secondary market will ultimately influence not only individual investors but also the long-term strength of Nepal’s capital market.