Beginner · IPO
How to Apply for an IPO
What an IPO is, how to apply on MeroShare step by step, how the lottery works, and what to do after listing.
On this page · विषयसूची
1. What is an IPO?
An IPO (Initial Public Offering), or प्राथमिक निष्कासन, is when a company sells its shares to the public for the first time. In Nepal, most ordinary IPO shares are sold at Rs. 100 per kitta (face value). Because many IPOs list above Rs. 100, applying for IPOs is the most popular first step for beginners.
| Type | Who can apply | Price |
|---|---|---|
| IPO | General public | Usually Rs. 100 per kitta (some use book-building) |
| FPO | General public, for an already-listed company | Set by the issue |
| Right share | Only existing shareholders, in proportion to their holding | Usually at a discount (often Rs. 100) |
| Mutual fund IPO | General public | Rs. 10 per unit, minimum 100 units |
2. How to apply on MeroShare (step by step)
- Log in at meroshare.cdsc.com.np (or the MeroShare app). Check the address carefully: only use the official site.
- Go to My ASBA → Apply for Issue. Open IPOs are listed there.
- Click Apply on the IPO you want.
- Choose your bank and account, enter the number of kitta (minimum 10 kitta = Rs. 1,000 for a Rs. 100 share) and your CRN (the number your bank gave you for ASBA).
- Tick the declaration, click Proceed, and confirm with your transaction PIN.
- Check Application Report the next day: the status should show the amount was blocked in your bank.
3. How allotment works
Popular IPOs get many more applications than shares. Then CDSC runs a computer lottery: usually every valid applicant has the same chance, and lucky applicants get the minimum lot (10 kitta). Applying for more kitta usually does not improve your chance in an oversubscribed IPO; it only blocks more money.
- Check the result in MeroShare → My ASBA → Application Report, or CDSC's IPO result page.
- If allotted, the blocked money is taken and the shares appear in your Demat a few days later.
- The company then lists on NEPSE; from IPO closing to listing usually takes a few weeks.
4. After listing: sell or hold?
New listings often move a lot in the first days. There is no rule that a new share must go up. Decide with the same thinking as any other share: is the company good (see the Fundamental guide), and what is the price compared to its earnings?
When you sell, remember the costs: broker commission, SEBON fee, DP charge and capital gains tax (see the cost calculator).
5. IPO tips
- Apply from one account per person. Applying twice with the same details can cancel both applications.
- Keep enough money in your bank before you apply, or the application fails.
- Read the company's prospectus summary: business, profits, why it is raising money.
- Never share your MeroShare password, transaction PIN or OTP with anyone, not even "helpers" on social media.