SEBON greenlights public issuance of Rs. 16.51 bn in securities, including debentures and mutual funds

KATHMANDU: In a significant boost to Nepal’s financial landscape, the Nepal Stock Exchange (NEPSE) has witnessed a substantial surge in listed securities, amounting to a staggering Rs. 54.76 billion during the initial five months of the current fiscal year 2023/24.

This financial milestone was revealed in the latest macroeconomic and financial report released by the Nepal Rastra Bank (NRB).

The breakdown of these securities includes ordinary shares valued at Rs. 44.65 billion, right shares at Rs. 6.10 billion, bonus shares at Rs. 3.98 billion, and Follow-on Public Offering (FPO) at Rs. 30.23 million, underscoring the diverse nature of the offerings in the market.

During the same period, the Securities Board of Nepal (SEBON) greenlit a total public issuance of securities amounting to Rs. 16.51 billion. This approval encompassed ordinary shares worth Rs. 8.51 billion, debentures worth Rs. 4.40 billion, mutual funds worth Rs. 2.50 billion, and right shares worth Rs. 1.10 billion.

As of mid-December 2023, the paid-up value of 7.93 billion shares listed on NEPSE reached Rs. 786.25 billion.

Notably, the stock market capitalization in mid-December 2023 stood at Rs. 3076.52 billion, showcasing a notable increase from Rs. 2721.11 billion in mid-December 2022.

Breaking down the stock market capitalization, Banking and Financial Institutions (BFIs) and insurance companies collectively accounted for 62.3%, while hydropower companies held 13.5%.

Investment companies contributed 7.2%, manufacturing and processing industries held 5%, hotels represented 3.2%, trading companies accounted for 0.5%, and other companies constituted 8.3%, as highlighted in the report.

The NEPSE index reflected this positive trend, standing at 1994.60 in mid-December 2023 compared to 1882.61 in the same period of 2022.

Furthermore, the number of companies listed at NEPSE reached 267 by mid-December 2023, a notable increase from 247 in the corresponding period of 2022. This surge in market activity reflects a growing confidence and participation in Nepal’s securities market.