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Nepal’s capital market recorded fresh momentum in share listings during the first nine months of the current fiscal year, with the Nepal Stock Exchange (NEPSE) listing securities worth more than Rs 132.36 billion, driven significantly by bonus shares issued by listed companies.

According to the latest data released by the Nepal Rastra Bank (NRB), a total of Rs 132.36 billion worth of shares and securities were listed on NEPSE by the end of Chaitra of Fiscal Year 2082/83, reflecting continued expansion in Nepal’s equity market despite fluctuations in investor sentiment and trading volumes.

Bonus Shares Account for Nearly Rs 40 Billion

The data shows that bonus shares alone accounted for Rs 39.89 billion, underscoring the continued preference of listed companies - particularly banks, financial institutions, and insurance firms - to reward shareholders through stock dividends instead of cash payouts.

In addition to bonus shares, NEPSE listed:

- Rs 45.54 billion worth of ordinary shares (IPOs)

- Rs 9.64 billion in rights shares

- Rs 27.50 billion in mutual fund units

- Rs 3.45 billion in debentures

- Rs 971.7 million in Follow-on Public Offerings (FPOs)

- Rs 22.9 million under other categories

The figures indicate that initial public offerings (IPOs) remained the largest contributor to new listings, followed closely by bonus shares, highlighting sustained activity in Nepal’s primary capital market.

SEBON Approves Rs 41.53 Billion in Public Issuances

During the review period, the Securities Board of Nepal (SEBON) approved public issuance proposals worth Rs 41.53 billion.

The approved securities include:

- Rs 27.23 billion in mutual funds

- Rs 9.12 billion worth of ordinary shares (IPOs)

- Rs 4.94 billion in rights shares

- Rs 200 million in debentures

- Rs 50 million in FPOs

The approval pipeline signals continued fundraising activity in Nepal’s capital market, particularly among hydropower companies, financial institutions, and collective investment schemes seeking to mobilize public capital.

Paid-Up Capital of Listed Shares Crosses Rs 933 Billion

By the end of Chaitra, a total of 9.48 billion listed shares had been recorded on NEPSE, with a combined paid-up value reaching Rs 933.89 billion, according to NRB data.

The number of companies listed on NEPSE stood at 294 during the review period, reflecting gradual growth in Nepal’s formal capital market ecosystem.

Hydropower Firms Continue to Dominate Listings

Sector-wise, the composition of listed companies reveals the increasing dominance of Nepal’s hydropower industry.

Of the total listed companies:

- 133 are banks, financial institutions, and insurance companies

- 103 are hydropower companies

- 28 belong to manufacturing and processing industries

- 9 are hotel companies

- 7 are investment companies

- 4 are trading companies

- 10 fall under other categories

The sharp rise in hydropower listings reflects Nepal’s push toward energy sector expansion and growing investor interest in electricity generation projects.

BFIs and Insurers Still Hold Half of Market Capitalization

Despite the increasing number of hydropower companies entering the market, banks, financial institutions, and insurance companies continue to dominate Nepal’s stock market capitalization, accounting for 50.2 percent of total market capitalization.

Hydropower companies hold the second-largest share at 17.8 percent, followed by:

- Manufacturing and processing industries: 8.8 percent

- Other groups: 8.5 percent

- Investment companies: 7.0 percent

- Trading companies: 4.4 percent

- Hotels: 3.3 percent

The data highlights the continued structural concentration of Nepal’s stock market around the financial sector, even as hydropower and other emerging sectors gradually expand their footprint.

Market analysts say the surge in listed securities, particularly bonus and IPO shares, reflects expanding participation in Nepal’s capital market. However, they note that deeper market reforms, stronger institutional participation, and diversification beyond financial stocks remain necessary to strengthen long-term investor confidence and improve market maturity.