सेबोन नेतृत्वविहीन हुँदा अड्किए ६९ अर्ब ३० करोडका १०४ आईपीओLeaderless SEBON Leaves Rs 69 Billion of IPOs from 104 Companies in Limbo

KATHMANDU — With the post of chairman lying vacant at the Securities Board of Nepal (SEBON), the approval process for initial public offerings has ground to a near halt. According to the regulator's latest data, proposals from 104 companies across various sectors — seeking to issue more than 472.9 million shares worth Rs 69.31 billion in total — are stuck in the queue awaiting clearance.

The board has been without leadership for around a month since then-chairman Santosh Narayan Shrestha resigned. The recommendation committee formed to pick a successor shortlisted four names — Dr. Nawaraj Adhikari, Binaya Dev Acharya, Mukunda Kumar Kshetri and Dr. Gopal Prasad Bhatta — and three of them have been forwarded to the cabinet, yet the appointment remains unconcluded. Investors and market stakeholders have questioned the transparency of the shortlisting, and with talk circulating in the market that the Prime Minister's Office has sought further study of the recommendation process, the appointment is said to have been delayed further.

The cost of the vacuum is being borne by the companies in the pipeline. Prolonged approval delays have begun disrupting capital-raising plans, with firms in hydropower, manufacturing and tourism in particular facing difficulties in project expansion, debt management and financial restructuring. The damage is not confined to IPOs either — policy decisions concerning the capital market have also stalled. Market participants warn that a regulator left leaderless for an extended period risks inflicting harm on investors, companies and the market as a whole.

A look at the pipeline shows manufacturing and processing holding the largest share by value: 30 companies from the sector have applied to raise more than Rs 35.35 billion, with major industrial names such as Jagdamba Steel, Shaurya Cement, Maruti Cement and Riddhi Siddhi Cement on the list. By number of companies, hydropower leads — 34 firms have sought permission to issue 171.4 million shares worth over Rs 17.5 billion. Eighteen hotel and tourism companies have proposed IPOs worth Rs 6.45 billion, 14 companies from other sectors Rs 5.9 billion, five investment-group companies Rs 3.41 billion, and three micro-insurance companies Rs 675 million.

Another trend inside the pipeline stands out: premium-priced IPOs are on the rise. More than a dozen companies in the queue have proposed selling shares above face value, half a dozen of them from the manufacturing and processing sector alone. The trend has stirred unease, with concerns voiced in the market that some promoters are attempting to use IPOs as an exit plan. Experts insist the regulator should approve premium offerings only on the strength of a company's financial position, profitability and long-term prospects.

Analysts are also weighing what happens once approvals resume. Releasing a large volume of IPOs at once risks draining liquidity from the secondary market — which is currently trading on relatively weak turnover and unsteady investor sentiment. The fortunes of the primary market, they say, will therefore hinge on the health of the broader market.

With interest rates on a downward path, IPOs could prove attractive to long-term investors. But experts advise careful risk assessment before investing in project-based companies, particularly in hydropower and manufacturing. If SEBON streamlines its approval process and gives priority to quality companies, they conclude, confidence in the capital market will only grow stronger.