A total of 89 companies are currently awaiting approval for initial public offering (IPO) from the Securities Board of Nepal (SEBON), with 43 of them from the hydropower sector alone. According to the Independent Power Producers' Association of Nepal (IPPAN), these hydropower companies have been waiting for approval for up to 22 months.

Amid this delay, some individuals claiming to have close ties with SEBON Chairman Santosh Narayan Shrestha have allegedly demanded commissions from promoters in exchange for fast-tracking IPO approvals.

Prakash Chandra Dulal, IPPAN’s Deputy Secretary General, made this claim after meeting with the representatives of the companies awaiting IPO approval. He said the group allegedly demanded commissions ranging from 7 to 10 percent of the total IPO amount.

Dulal noted that while the individuals claimed to be acting on behalf of SEBON’s leadership, it remains unclear whether they were genuinely sent by Chairman Shrestha or were acting independently.

SEBON has responded to the allegation with a public statement, saying it would take legal action if anyone is found exploiting the chairman’s name for financial or other illicit gains. SEBON spokesperson Niranjaya Ghimire rejected the claims as baseless and urged stakeholders to submit concrete evidence if approached for money.

Ghimire added that many IPO applications have remained pending because some companies have yet to submit all required documents, and the board is working systematically to process approvals.

Several hydropower companies—including Himstar Energy Company Limited, Bhujung Hydropower Limited, Daramkhola Hydro Energy Limited, Sanima Hydropower Limited, Sanvi Energy Limited, and Beni Hydropower Limited—are in the pipeline for IPO approval. Others waiting in line include Solu Hydropower Limited, Taksar Pikhuwa Khola Hydropower Limited, Kalinchowk Hydropower Limited, Yamling Hydropower Limited, and Mabilung Hydropower Limited.

SEBON has not approved IPOs of companies with a net worth of less than Rs 90 per share for the past one and a half years, following a directive from the Public Accounts Committee of the House of Representatives.

Hydropower companies have collectively applied to issue IPOs worth Rs 19.44 billion. Promoters say delays in approval have left them unable to raise capital through public investment, making it difficult to meet loan repayment obligations.

In response, IPPAN formed a 15-member committee on Tuesday to begin preparations for protests. The decision followed a meeting of affected entrepreneurs.