KATHMANDU: The government is preparing to introduce a legal provision that would bar hydropower companies from issuing initial public offerings (IPOs) before starting electricity production.
According to the Economic Reform Action Plan 2025, recently approved and made public by the government, only hydropower companies that have begun generating electricity will be allowed to issue primary shares.
“The provision will require hydropower companies to issue IPOs only after beginning power generation,” the action plan states. It also outlines that this regulation will be implemented within the next two years.
Once enforced, the provision is expected to significantly impact a large number of hydropower companies currently in the pipeline for IPO approval at the Securities Board of Nepal (SEBON).
The move aims to protect investors by ensuring that companies issuing shares have begun operations and demonstrated viability, rather than relying solely on proposed projects to raise capital.
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