How to Apply for IPOs in Nepal Through Meroshare

Initial Public Offerings (IPOs) represent the primary gateway for retail citizens in Nepal to participate in corporate capital formation. Regulated by the Securities Board of Nepal (SEBON) under the Securities Issue and Allotment Guidelines 2074, primary issues in Nepal have historically democratized stock ownership, enabling millions of retail applicants to acquire shares at face value.

Understanding Nepal's 10-Kitta Allotment Rule

Under SEBON regulations, every retail public issue in Nepal operates under the mandatory 10-kitta allotment rule. If an issue is oversubscribed (which occurs for virtually all ordinary equity IPOs), CDSC conducts a cryptographic, computer-based lottery where selected applicants receive a baseline minimum allotment of 10 shares (typically NPR 1,000 at par value of NPR 100).

Consequently, applying for more than 10 or 20 kitta in an ordinary, heavily oversubscribed IPO ties up excess bank capital without improving your mathematical probability of allotment.

Prerequisites for Applying via MeroShare

• Active 16-digit DEMAT BOID account registered with an authorized DP.
• Active MeroShare login credentials (username, password, and 4-digit transaction PIN).
• Bank account with active C-ASBA authorization and verified CRN number.
• Clear bank balance equal to the application value (NPR 1,000 for 10 units).

Step-by-Step Application Walkthrough

1. Log into MeroShare: Visit meroshare.cdsc.com.np or launch the MeroShare mobile application. Select your Depository Participant (DP) from the dropdown, enter your username and password.
2. Navigate to 'My ASBA': From the navigation dashboard, click on the "My ASBA" tab and select "Apply for Issue".
3. Select the Open Issue: Locate the public company currently issuing shares to the general public. Click "Apply".
4. Fill the Application Form:
   • Select your verified bank account and depository branch.
   • Enter your registered C-ASBA Registration Number (CRN).
   • Specify applied quantity (typically 10 kitta for retail issues).
   • Agree to the regulatory declarations by checking the consent box.
5. Confirm with Transaction PIN: Enter your 4-digit transaction PIN to submit. The applied amount is immediately blocked (held) in your bank account via ASBA.

Checking Allotment Results

Following issue closure and regulatory scrutiny, CDSC conducts the allotment ceremony. Results are publicly verifiable on:

• MeroShare portal under "Application Report"
• Official CDSC allotment verification portal (iporesult.cdsc.com.np)
• The issuing company's designated merchant banker portal

If allotted, the blocked funds are transferred to the issuing company, and shares are credited to your DEMAT BOID within several working days. If unallotted, the blocked funds are automatically released back to your available bank balance without deduction.