How to Apply IPO from abroad | 10% Quota for Nepali workers

How to Apply IPO from abroad

Nepalese working abroad can apply for an IPO in Nepal with a Labour Permit or Shram Swikriti by opening a remittance account, The Securities Board of Nepal reserved a 10% quota for all upcoming IPOs issued.

It does not matter if you are in America, Dubai, Qatar, or any other part of the world. You can now take part in the Nepalese stock market through IPO or Secondary Market if you have legal documents.

What is an IPO?

IPO stands for Initial Public Offering, which is when a company offers its shares or ownership to the general public for the first time. Companies mostly offer IPOs to raise capital to expand or invest in new projects in their business.

Share price usually starts from rs.100 in Nepal but companies can add the premium price if they believe their company’s valuation is worth more than that.

An example of a Premium IPO is when Ghorahi Cement Industry Limited issued 69,11,670 unit IPO shares of Rs 435 per unit (including a premium of Rs 335).

Requirements | Eligibility Criteria

All Nepalese workers abroad with valid documents are eligible for a 10% foreign employment IPO quota.

To apply for IPO from the 10% foreign employment IPO quota, you must meet the following requirements.

  1. Must be a Nepalese citizen 18 years or above working abroad.
  2. Must have a foreign employment permit or Shram Swikriti.
  3. Must have a Remittance savings account in an ASBA member bank.
  4. Must have deposited a minimum of Rs 50,000 within the last 6 months.
  5. Must have Meroshare and DEMAT account.
  6. Must have a CRN Number to apply for IPO.

Documents Required for applying for IPO from abroad

The documents you need to provide in Nepali Bank to apply for IPO from abroad are.

  • Copy of Passport
  • Visa copy or temporary residence copy
  • Foreign employment permit or Work Permit
  • Remittance account in ASBA member bank

How to apply for IPO from abroad for Nepali workers?

To apply for IPO from Abroad for Nepali Workers follow the steps listed below.

Before the general public is offered a share, companies should allocate 10% of their total IPO to Nepalese citizens working in a foreign nation.

Foreign Quota

Apply IPO from abroad | 10% Quota for Nepali workers

Video Credit: Sharemandu YouTube Channel

Can Nepalese Students Studying and Working Abroad Apply for IPO in Nepal?

No, Nepalese students studying and working part-time abroad cannot apply for IPO in Nepal. The 10% foreign employment quota is reserved only for workers who have work permits, students working part-time and NRNs cannot participate in the foreign reserve quota.

Reason for 10% quota in IPO

The officials believe this new system will help workers in foreign countries send home money through formal institutions (banks).

The craze for IPOs in Nepal has always been in high demand because of low investment and mostly high returns. They believe the number of workers will start using a formal system for remittance if there is a certain percentage of reservation in the IPO.

According to government officials, most of the remittance amount sent by workers in Nepal was used for consumer products, which are mostly imported from other countries.

The Securities Board of Nepal | SEBON under the initiative of the Ministry of Finance aims for the money received should be used for the nation’s economy. And believe this will be a good investing opportunity for migrant workers

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