Despite being available at a face value of Rs 100 per share, investors have shown little interest in purchasing right shares of various companies. According to share issuance and sales managers, ordinary shareholders, in particular, have not been applying for these shares in significant numbers.

For instance, the right shares of NLG Insurance, which trade at around Rs 1,000 per share in the secondary market, have not been fully subscribed by the deadline. As a result, the company has extended the application period. NLG Insurance initially issued 62.56 percent right shares from November 26 to December 16, but due to low participation, the deadline has now been extended. As of December 16, applications had been received for only 2.16 million units out of the 9.63 million units issued, according to CDS and Clearing Limited (CDSC), a subsidiary of Nepal Stock Exchange.

The right shares were issued to raise the company’s paid-up capital to Rs 2.5 billion as directed by the Nepal Insurance Authority. Bijay Lal Shrestha, Chief Executive Officer of Laxmi Sunrise Capital Limited, the issuance manager, explained that the extension was necessary due to low investor response. Shrestha speculated that the low participation might be because some investors are abroad or unaware of the issuance, despite repeated notifications. He remains optimistic that the shares will be fully subscribed within the extended period.

Similarly, Life Insurance Corporation (Nepal) Limited may also face challenges in selling its right shares, despite a secondary market price of Rs 1,180 per share. The company issued 23.468 million units of right shares on November 27, with an application deadline of December 17. However, as of December 16, applications had been received for only 3.438 million shares, according to CDSC. Lekhnath Pokharel, Chief Executive Officer of Nepal SBI Merchant Banking Limited, the issuance manager, reported that while 70 percent of promoter right shares have been applied for, the public response remains low.

Life Insurance Corporation issued 88.45 percent right shares based on its existing paid-up capital of Rs 2.6532 billion. Following the issuance, the company's capital is expected to increase to Rs 5 billion.

In the hydropower sector, two companies are also selling right shares in the primary market. Liberty Energy issued 7.5 million units of right shares worth Rs 750 million to finance the Upper Dordi A Hydropower Project, repay debts, and fund the Lodokhola Small Hydropower Project. The 50 percent right shares, issued on December 1, are open for applications until December 22. Shareholders who held shares until November 5 are eligible to apply. As of December 16, Liberty Energy’s shares traded at Rs 208.90 per share in the secondary market.

Similarly, Balefi Hydropower has issued 18.279 million units of right shares, representing 100 percent of its existing shares. The issuance, which began on December 12, is open until January 1 for shareholders who held shares as of November 5. Balefi issued these shares to partially repay bank loans used for project construction, settle loans from promoters, and clear outstanding dues to contractors and vendors, amounting to Rs 1.8 billion. As of December 16, Balefi’s share price in the secondary market was Rs 342.30 per share.