Understanding IPO Allotment in Nepal: A Fair and Transparent Process

n Nepal, the Initial Public Offering (IPO) allotment process follows a structured and transparent system to ensure fairness among applicants. After the IPO subscription period closes, the issue manager collects all applications and filters out invalid entries, such as duplicate applications or those with incorrect details. The allotment is conducted through a lottery-based system, where a random starting number is selected, followed by a calculated skip value that determines the interval between selected applicants. This ensures equal chances for all investors, regardless of when they applied. The Securities Board of Nepal (SEBON) mandates that each eligible applicant receives a minimum of 10 shares, with additional shares distributed based on availability. The process is automated, eliminating human bias, and results are publicly disclosed through company websites and stockbroker platforms, allowing applicants to verify their allotment using their BOID (Bankers’ Order Identification). This system maintains transparency and ensures equitable distribution of shares among investors

Posted At: April 25th 2025, 8:38:18 am