How to Buy IPO of a Company in Nepal

Even though there are more than 50 lakh Demat accounts, still a lot of people are still confused about how to buy IPO of companies in Nepal.

As you know every month at least 2 or 3 Companies in Nepal are issuing IPO to the public. This means you have a chance to acquire shares of companies at Face Value which is Rs. 100. We’ve already seen most of the companies which sell their shares to the public do well within a few months only.

Accounts Required to Apply for IPO in Nepal

First of all, let’s talk about all the necessary accounts that you have to create before you can even apply for IPO in Nepal. So, there are three main accounts that you will need if you just want to buy IPOs, and that is Bank, Mero Share, and Demat Account.

Open or Own a Bank Account

This is important as all the purchases or funds that you earn from IPOs will be transferred or deposited directly into your account. Commercial Bank or Development Bank which supports DEMAT and Mero Share accounts.

If you already have a Bank Account then, visit your bank’s official website and apply for Demat and Mero share account.

How to Create Mero Share and Demat Account?

Creating Mero Share and Demat accounts is easy you can fill online form or just visit your bank’s nearest branch and fill-up the form and submit it. Your accounts will be created within 48/72 hours (depending on the bank) and then they will send your details to your phone(SMS) and email address.

Below is an example of Nabil Banks's online form for Demat and Mero Share Account.
Nabil Bank Demat and Mero share Account Form Online

Documents needed to open mero share and Demat accounts?

There are very few documents that you will need to open accounts,

  • Photocopy of your Citizenship (both sides)
  • Passport size photo
  • Form with proper information
  • PAN card (Optional – as per Nabil Bank)

How to apply IPO from a mero share account?

ipo of Upakar Laghubitta Bittiya Sanstha Limited
Apply IPO through Mero Share Account

After successfully creating a Demat and Mero share account you will receive a few important credentials.

  • Mero Share Login Details (DP ID, Login ID, and Password) you can log in to your mero share account using these details.
  • Next is your Demat account number and CRN number (C-ASBA Registration Number)
  • Wait for IPO Opening.

Applying for IPO through Mero Share Account

  • To apply for IPO first log in to your Mero Share account.
  • Click on My ASBA
  • Then choose the company and click on apply.
  • Enter the number of units you want to buy (10 recommended)
  • Enter your CRN number which was provided by Bank.
  • Click Proceed (End)
  • Now all you can do is wait for your result.

How much investment is needed?

IPOs are very competitive as there is a large number of investors who want to buy these IPOs and the number of shares companies provide is very less in number. So, the chance of one getting the allotted share is slim. But in case you are lucky enough and get allotted IPO then also you will usually not get more than 10 units which are Rs. 1000.

So, you will need to invest around Rs 1000 + C-ASBA charge. Every bank charges different C-ASBA charges so I suggest you check the link below to know what amount your bank charges.

Are they any hidden charges when you apply for IPO?

No, the only extra charge you will have to endure is the C-ASBA charge from the bank which is non-refundable. In case you are not allotted for IPO then the RS. 1000 will be refunded to your Bank account but the C-ASBA charge will not.

Hope this answers your question on how to buy IPO in Nepal.

Points to remember before applying for IPO in Nepal

Yes, there is a limit set for buying IPO in Nepal.

The Minimum number of units you can buy is 10 Units and the maximum is set by the company. You can see the maximum limit while applying for IPO.

Even though you can own 2 Demat accounts you can apply from one account only, or else your application will be rejected.

Please calculate your expenses including shares price and C-ASBA charge, and make sure you have enough balance in your bank account.

Infographic on How to Buy IPO in Nepal

Open MeroShare Demat Account by Hari Kumar Thapa

Please, if you have any questions or any information that you want to add then leave a comment below.

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