KATHMANDU: The Securities Board of Nepal (Sebon) approved the issuance of ordinary shares (IPOs) worth Rs 10.75 billion in the last fiscal year. This approval covered more than 404.5 million shares. However, this represents a significant decrease compared to the previous fiscal year, when the board had approved IPOs worth over Rs 22.37 billion.

The statistics reveal a drop of Rs 11.62 billion in IPO issuance permissions. The number of companies receiving approval also fell sharply, from 42 in the previous year to just 9 in the last fiscal year.

The approval process for IPOs was stalled for about six months, which contributed to the reduced number of approvals. During his tenure, SEBON Chairman Ramesh Kumar Hamal prioritized IPO approvals to increase the number of companies listed in the secondary market. However, his term ended on January 5, and the board has yet to appoint a new chairman.

From January 4 to June 28, the IPO approval process was halted. Currently, in the absence of a chairman, the board is operating under the leadership of a representative from the Ministry of Finance. Although the IPO issuance process resumed on June 28 with the approval of Reliance Spinning Mills, the company has been barred from issuing further approvals for the time being due to the controversy over its dues to the Nepal Electricity Authority.