SEBON Delists IPO Applications of 14 Companies Over Low Net Worth

The Securities Board of Nepal (SEBON) has delisted 14 companies that had applied to issue initial public offerings (IPOs), citing failure to meet regulatory criteria. The list includes six hydropower companies.

The decision follows accusations from some hydropower promoters, who alleged that individuals claiming ties to SEBON Chair Santosh Narayan Shrestha were demanding commissions in exchange for IPO approvals. However, SEBON has denied these claims, stating that the delisting was purely based on technical grounds.

SEBON spokesperson Niranjaya Ghimire said the companies were removed because they did not meet the minimum eligibility standards. He explained that 13 of the 14 companies had an actual net worth per share of less than Rs 90, while one hydropower company had a power purchase agreement (PPA) valid for only five years, raising concerns about investor risk.

Ghimire added that the decision was in line with a directive issued about 18 months ago by the Public Accounts Committee (PAC), which instructed SEBON to bar companies with a net worth below Rs 90 from issuing IPOs. "The companies have been informed that they may reapply once they meet the required criteria," he said.

SEBON has also removed these companies from its online list of IPO applicants. While their names were visible on the board’s website until Sunday, they were taken down on Monday.

The companies removed from IPO pipeline include:

Apex Hospitality Limited

Orchid Holdings Limited

Annapurna Cable Car Liimited

Thamel Plaza Hotel and Suites Limited

Sanima Hydropower Limited

Richet Jalbidhyut Comapny Limited

Beni Hydropower Project Limited

Laughing Buddha Power Nepal Limited

Unique Hydel Company Limited

Puwakhola-One Hydropower Limited

Accord Pharmaceuticals Limited

Sopan Pharmaceuticals Limited

Kantipur Television Network Limited

Prabhu Helicopter Limited