Many new investors in Nepal’s stock market often hear the term IPO allotment but are not fully aware of what it means or how the process works. In simple terms, IPO allotment refers to the distribution of company shares among applicants after the public offering closes.
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According to the Securities Issuance and Allotment Guidelines, 2074 (2017), IPO allotments must follow a transparent and systemized process. Here’s a complete breakdown of how IPO allotment works in Nepal and how investors can check their IPO results online.
What is IPO Allotment?
IPO allotment is the process that determines who receives shares and how many shares each applicant gets after an Initial Public Offering (IPO) closes. Because the number of applicants often exceeds the number of available shares, shares are distributed through a lottery system (lucky draw) that ensures fairness among all verified applicants.
Step-by-Step Process of IPO Allotment in Nepal
1. IPO Issue Announcement and Application Period
The issue manager (usually a merchant bank) first publishes an official notice mentioning the opening and closing dates for IPO applications.
Different investor groups—such as locals from the affected area, Nepalis working abroad, mutual funds, employees, and the general public—are given separate timeframes to apply.
- For example, locals may get up to 30 days, migrant workers 15 days, and the general public typically 4 to 30 working days to submit applications.
Once all shares are subscribed, the IPO closes.
2. Application Verification by Banks (C-ASBA Members)
After the IPO closes, all submitted applications are sent to banks and financial institutions registered under the C-ASBA system.
Banks verify whether the applied amount matches the balance in the applicant’s account.
If everything is correct, the bank approves (verifies) the application; otherwise, it may reject it.
Sometimes, applications remain in “unverified” status for a day or two after submission. In that case, investors should contact their bank branch to request verification.
3. Duplicate Application Check
The issue manager then performs a duplication check to identify if a single person has applied from multiple demat accounts for the same IPO.
If an investor is found to have submitted more than one application, all such applications are cancelled automatically.
4. Preparing the Eligible Applicant List
After duplicate entries are removed, the issue manager creates a final list of eligible applicants who qualify for the allotment process.
5. Allotment Ratio and “Skip Number” Calculation
Next, the issue manager calculates what’s known as a “skip number” — a random interval number used during the lottery.
This number is determined by dividing the total number of available shares by the total number of verified applicants.
6. Approval from the Securities Board (SEBON)
Before conducting the final allotment, the issue manager must seek pre-allotment approval from SEBON (Securities Board of Nepal).
This request is submitted three days before the scheduled allotment date.
7. Final Allotment Day: The Lottery System
Once SEBON grants approval, the company and the issue manager hold a lottery (ball draw) event in the presence of:
- Company representatives
- Issue manager representatives
- NEPSE and Company Registrar officials
- Journalists and investors
A draw is conducted using numbered balls ranging from 0 to 9. The number drawn determines the starting demat account number for allotment. From that starting point, the system automatically allocates shares by adding the skip number sequentially until all shares are distributed.
8. Uploading IPO Results
After allotment, the issue manager uploads the results to the Central Depository System and Clearing Ltd. (CDSC), which operates Mero Share and the official IPO result website.
Investors can then check whether they were allotted shares.
How to Check IPO Results in Nepal
There are two main ways to check IPO allotment results:
1. Using the CDSC IPO Result Website
Step 1: Visit the Official CDSC IPO Result Website
The fastest and most reliable way to check your IPO result is through the Central Depository System and Clearing Ltd. (CDSC) official portal.
- Go to https://iporesult.cdsc.com.np.
- You will see a page with a dropdown menu for companies that recently issued IPOs.
Step 2: Select Your Company
Choose the name of the company for which you applied for the IPO. This ensures you see results specifically for your application.
Step 3: Enter Your BOID
Your BOID (Beneficiary Owner ID) is a unique 16-digit number provided by your demat account or Mero Share account. Enter this number carefully to check your result.
Step 4: Enter the Captcha
Type the captcha code shown on the screen to verify that you are a human user.
Step 5: Click “View Result”
After entering your details, click the “View Result” button. The system will show one of two results:
- Allotted: You have been allocated shares. The allotted quantity will also be displayed.
- Not Allotted: You were not allotted any shares.
2. Through Mero Share Account
If you have a Mero Share account, you can check your IPO allotment there as well:
- Log in to https://meroshare.cdsc.com.np.
- Go to the My ASBA menu.
- Click Application Report.
- Select the IPO company you applied for.
- Under the Status column, you will see either Allotted or Not Allotted.
This method is convenient for investors who actively track their investments using Mero Share.
Why IPO Allotment is Done by Lottery
In most IPOs in Nepal, the number of applicants is much higher than the number of available shares. For example, if a company offers 500,000 shares but receives 1 million valid applications, only half of the applicants can get shares.
Because of this, the system uses a lottery method to ensure fairness. Each verified applicant has an equal chance of being selected, and no preference is given based on the amount applied (except for institutional investors or special categories defined by SEBON).
Key Points for Investors
- Make sure your Mero Share and C-ASBA account are active and verified.
- Always apply through a single demat account to avoid disqualification.
- Check your application status in Mero Share after applying.
- Keep your BOID number safe — it’s required for checking results.
- Use official sources only (Mero Share or the issue manager’s website) to check allotment results.
Final Thoughts
IPO allotment is a fair and automated process supervised by regulatory bodies to maintain transparency in Nepal’s stock market. By understanding how it works and knowing where to check results, investors can confidently participate in upcoming IPOs.
As more companies go public, awareness of the allotment process helps both new and seasoned investors make informed decisions and manage expectations regarding share allocation.
Also Read:
Shreenagar Agritech Industries IPO Opens for Public from October 12: Here’s All You Need to Know
What Is an IPO? How It Works and Its Different Types in Nepal
How to Reset Your Meroshare Password: Step-by-Step Guide
NEPSE Index Explained: How Nepal’s Stock Market Indicator Works
Hidden Costs in Nepal’s Share Market: How Much You Actually Pay in Fees and Tax