No.of demat accounts increased this year; More than 34 lakh accounts recorded

Kathmandu, April 13

This year, the primary market has been blooming in Nepal’s stock market. Amid the Corona crisis, when various companies issued IPOs, those who could not invest in other sectors flocked to the primary market. Due to which the stock market managed to reach new heights in a short time.

In this year, from the second week of Ashard to the third week of Chaitra, IPOs of 18 different companies were issued. These IPOs have raised an additional investment of Rs. 13.5 arba. The first IPO of this year was of NIC Asia Laghubitta on Ashard 10. And the last IPO was of Ru Ru Hydropower which was allotted on Chaitra 20.

This year, 18 companies including 6 insurance companies, 5 hydropower companies and 4 microfinance companies have issued IPOs. This year, Nepal Infrastructure Bank Limited (NIFRA) has issued a largest number of IPO.

This year, Ajod Insurance, General Insurance and Sanima General Insurance of non-life insurance group and Reliance Life Insurance, Prabhu Life Insurance and Jyoti Life Insurance of life insurance group have issued IPOs. Ajod, General and Sanima General have issued IPOs worth Rs. 30 crore. Reliance Life, Prabhu Life and Jyoti Life Insurance have issued IPOs worth Rs. 63 crore, Rs. 60 crore and Rs 66 crore respectively.

On the hydropower side, Mountain Energy has issued  IPO of worth Rs. 19 crore 68 lakh, United Idi Mardi & RB Hydropower issued of worth Rs. 6 crore 30 lakh, Green Life Hydropower issued of Rs. 34 crore 96 lakh, Singati Hydro Energy issued of Rs. 29 crore and Ru Ru Hydropower Project issued of Rs. 4 crore 89 lakh.

Four microfinance have issued IPO this year. NIC Asia Laghubitta issued IPO of worth Rs. 47 crore 55 lakh, Sadhana Laghubitta issued of Rs. 7 crore 7 lakh, Samaj Laghubitta issued of Rs. 86 lakh  and Mahila Laghubitta issued of Rs. 4 crore.

Similarly, NRN Infrastructure Development have solf IPOs worth Rs. 33 crore 98 lakh and Chandragiri Hills have sold IPOs worth Rs. 15 crore 34 lakh to the public this year. Both of them had issued IPOs on Shrawan 16 and on Poush 24, respectively.

Meanwhile, Nepal Infrastructure Bank Limited (NIFRA) has launched its biggest IPO so far. The bank has sold an IPO worth Rs. 8 arba.

With the wave of IPOs, the number of demat account openers has also increased drastically. According to CDSC, the number of demat accounts has reached 34 lakh 2 thousand 203 so far.