IPO Lock-in Period in NEPSE: Focus On Hydropower Companies ( Updated)

Spread the love

When a company goes public, it issues an initial public offering (IPO), which allows it to raise money by selling shares. All shareholders can’t sell their shares immediately after the IPO. Here is where the concept of a lock-in (IPO LockUp Period) period comes into play.

What is an IPO lock-in period, and how does it work?

IPO lock-in period in Nepal

A lock-in period, a common practice in investment landscapes worldwide, denotes a stipulated duration during which investors are prohibited from selling, transferring, or disposing of their shares or assets in a company or investment. In Nepal, this regulatory measure applies specifically to sectors like hydro, investment, manufacturing & processing, and hotels following the initial public offering (IPO) allotment to the general public.

Nepal’s lock-in period usually lasts three years following an IPO.

Sector-wise Overview of Lock-in Period in Nepal

  • Hydro and Manufacturing & Processing Sector 
    During the 3-year lock-in period, the unit shares held by project-affected locals and promoters in the hydro and manufacturing & processing sectors are bound. This restriction ensures stability and aligns the interests of key stakeholders with the long-term success of the enterprise.
  • Investment and Hotel Sector
    In the investment and hotel sector, where no reservation is made for locals during IPO issuance, only promoter shareholdings are locked in. This measure protects against rapid share sell-offs, promoting sustained growth.

We have compiled a list of Hydropower companies in Nepal with their Lock In Period and Ending date.

list of Companies from Nepal with their Lock-in Period with Ending Date

Company NameCompany CodeLock-in End Date
Lock-in Period of Asian Hydropower LimitedAHL2026-02-26
Lock-in Period of Arun Valley Hydropower Development Company LimitedAHPC2012-08-17
Lock-in Period of Ankhukhola Hydropower Company LimitedAKJCL2021-10-28
Lock-in Period of Arun Kabeli Power LimitedAKPL2019-12-22
Lock-in Period of Api Power Company LimitedAPI2018-11-09
Lock-in Period of Barun Hydropower Company LimitedBARUN2018-05-01
Lock-in Period of Bindhyabasini Hydropower Development Company LimitedBHDC2025-06-17
Lock-in Period of Balephi Hydropower LimitedBHL2025-04-12
Lock-in Period of Barahi Hydropower Public LimitedBHPL2025-12-18
Lock-in Period of Buddha Bhumi Nepal Hydropower Company LimitedBNHC2024-10-08
Lock-in Period of Butwal Power Company LimitedBPCL-
Lock-in Period of Chilime Hydro power Company LimitedCHCL2014-07-24
Lock-in Period of Chhyangdi Hydropower Company LimitedCHL2020-07-01
Lock-in Period of Dibyashwari Hydropower Company LimitedDHPL2019-08-25
Lock-in Period of Dordi Khola Hydropower Company LimitedDORDI2025-06-22
Lock-in Period of Eastern Hydropower LimitedEHPL2025-11-02
Lock-in Period of Ghalemdi Hydro LimitedGHL2021-04-14
Lock-in Period of Greenlife Hydropower LimitedGLH2024-02-19
Lock-in Period of Green Ventures LimitedGVL2025-04-03
Lock-in Period of Himal Dolakha Hydropower Company LimitedHDHPC2022-08-21
Lock-in Period of Himalayan Hydropower LimitedHHL2025-07-12
Lock-in Period of Himalayan Power Partner LimitedHPPL2020-03-22
Lock-in Period of Himalaya Urja Bikas Company LimitedHURJA2022-04-16
Lock-in Period of Joshi Hydropower Development Company LimitedJOSHI2021-12-11
Lock-in Period of Khani Khola Hydropower Company LimitedKKHC2019-01-26
Lock-in Period of Kalika Power Company LimitedKPCL2021-09-26
Lock-in Period of Liberty Energy Company LimitedLEC2025-07-12
Lock-in Period of Madhya Bhotekoshi Jalavidyut Company LimitedMBJC2024-10-28
Lock-in Period of Mountain Energy Nepal LimitedMEN2023-12-03
Lock-in Period of Molung Hydropower Company LimitedMHCL2026-03-03
Lock-in Period of Mandakini Hydropower LimitedMHL2025-08-01
Lock-in Period of Mountain Hydro Nepal LimitedMHNL2022-03-17
Lock-in Period of Maya Khola Hydropower Company LimitedMKHC2082-10-26
Lock-in Period of Mailung Khola Jal Vidhyut Company LimitedMKJC2024-08-24
Lock-in Period of Ngadi Group Power LimitedNGPL2019-05-26
Lock-in Period of Nepal Hydro Developer LimitedNHDL2020-09-15
Lock-in Period of National Hydro Power Company LimitedNHPC-
Lock-in Period of Nyadi Hydropower LimitedNYADI2024-10-21
Lock-in Period of Peoples Hydropower Company LimitedPHCL2025-11-22
Lock-in Period of Panchakanya Mai Hydropower LimitedPMHPL2021-07-26
Lock-in Period of Panchthar Power Company LimitedPPCL2022-03-07
Lock-in Period of People's Power LimitedPPL2025-09-28
Lock-in Period of Radhi Bidyut Company LimitedRADHI2021-01-16
Lock-in Period of River Falls Power LimitedRFPL2025-05-22
Lock-in Period of Rapti Hydro & General Construction LimitedRHGCL2025-07-24
Lock-in Period of Rasuwagadhi Hydropower Company LimitedRHPL2021-03-31
Lock-in Period of Ridi Power Company LimitedRIDI-
Lock-in Period of Ru Ru Jalbidhyut Pariyojana LimitedRURU2024-04-15
Lock-in Period of Sahas Urja LimitedSAHAS2024-10-03
Lock-in Period of Swet-Ganga Hydropower & Construction LimitedSGHC2025-08-03
Lock-in Period of Singati Hydro Energy LimitedSHEL2024-04-09
Lock-in Period of Sanima Mai Hydropower LimitedSHPC2016-10-31
Lock-in Period of Sikles Hydropower LimitedSIKLES2025-09-25
Lock-in Period of Sanjen Jalavidhyut Company LimitedSJCL2021-03-31
Lock-in Period of Supermai Hydropower LimitedSMH2026-02-17
Lock-in Period of Super Madi Hydropower LimitedSMHL2026-02-05
Lock-in Period of Sagarmatha Jalbidhyut Company LimitedSMJC2026-03-31
Lock-in Period of Samling Power Company LimitedSPC2024-11-01
Lock-in Period of Synergy Power Development LimitedSPDL2020-02-17
Lock-in Period of Sayapatri Hydropower LimitedSPHL2025-08-13
Lock-in Period of Shuvam Power LimitedSPL2026-03-11
Lock-in Period of Shiva Shree Hydropower LimitedSSHL2022-12-10
Lock-in Period of Sanima Middle Tamor Hydropower LimitedTAMOR2026-03-22
Lock-in Period of Terhathum Power Company LimitedTPC2024-09-10
Lock-in Period of Upper Hewakhola Hydropower Company LimitedUHEWA2025-07-16
Lock-in Period of United Modi Hydropower LimitedUMHL2019-10-06
Lock-in Period of United Idi-Mardi and R.B. Hydropower LimitedUMRH2023-11-30
Lock-in Period of Union Hydropower LimitedUNHPL2022-05-02
Lock-in Period of Universal Power Company LimitedUPCL2022-02-27
Lock-in Period of Upper Tamakoshi Hydropower LimitedUPPER2021-11-27
Lock-in Period of Upper Solu Hydro Electric Company LimitedUSHEC2025-07-14
Lock-in Period of Bhagawati Hydropower Development CompanyBGWT2026-08-14
Lock-in Period of Manakamana Engineering HydropowerMEHL2026-08-20
Lock-in Period of Upper Lohore Khola Hydropower CompanyULHC2026-09-04
Lock-in Period of Mandu Hydropower LimitedMANDU2026-09-10
Also Read  An Overview of Nepalese Companies' Performance - Q4 FY 2079/80

The importance of an IPO lock-in period for maintaining market stability

The IPO lock-in period is intended to stabilize the shares’ market price. Maintaining market stability and stock prices is possible by preventing major shareholders from selling too soon after the IPO. New companies may find this important since they may be more volatile. 

Understanding the expiration of an IPO lock-up period and its impact on stock prices

When the IPO lock-in period expires, insiders and significant shareholders can sell their shares, resulting in a more volatile stock price. If shares are sold as soon as lock in period is finished, the stock price may go down. But, if insiders keep their shares, it can be interpreted as a vote of confidence in the business and could raise the stock price.

It is uncommon for IPO lock-in periods to be extended or shortened. Still, it can happen under specific circumstances, usually done to adjust to shifting market conditions or to meet insider demands who might need to sell their shares for valid reasons. All depends on rules and regulations of the respective country and its market regulator. 

Risks associated with investing in a company during its IPO lock-up period

Investors often pay close attention to the expiration of an IPO lock-up period because it affects the company’s stock price. Purchasing stock in a company during the IPO lock-in period carries various risks and returns.

Also Read  A Comprehensive Overview of Remittance Inflows in Nepal from Fiscal Year 2077 to 2080

There are chance of making money in short term investment if the market is bullish, fundamental of the company is strong and stocks are locked up for certain time, which means there is low supply of the tradable stocks. 

After the lock-in period expires, a significant share sale could result in a significant decline in the stock price. Insiders may have a more thorough insight into the business’s finances and prospects, which could give them an unfair advantage over other investors. So investment on the stocks should always be backed with strong research and risk taking capacity of self. 

Conclusion

The IPO lock-in period is a vital mechanism for stabilizing the market for a company’s shares following an IPO. It is intended to prevent a sudden influx of shares into the market, which could cause a sharp decline in the stock price. While the expiration of an IPO lockup period can be a significant event for investors, it is worthwhile to consider the risks associated with investing in a company during its IPO lockup period.

FAQs

How does the lock-in period benefit investors?

A: The lock-in period promotes stability, discourages short-term trading, and aligns investor interests with the long-term success of companies.

What sectors are subject to the lock-in period in Nepal?

A: The lock-in period applies to sectors like hydro, investment, manufacturing & processing, and hotels following IPO allotment.

Also Read  An Overview of Nepalese Companies' Performance - Q4 FY 2079/80

How does the combination of the lock-in period and early dividend distribution fortify market stability?

A: By ensuring main promoters maintain their shares initially, the risk of rapid share sell-offs during market challenges is mitigated, preserving Nepal’s capital market integrity.


Spread the love