About this Calculator
$Calculate allotment probabilities, opening ranges, and ASBA charges. Select the relevant tab to perform precise calculations based on current Nepal Stock Exchange (NEPSE) and SEBON regulations.
Features
- 100% mathematically accurate calculations
- Up-to-date with SEBON & NEPSE broker tiers
- Instant client-side performance
- No data sent to server (100% private)
A Complete Guide to IPOs & The Primary Market in Nepal
Table of Contents
1. Calculating IPO Allotment Probability
The primary market in Nepal is incredibly lucrative, but heavily oversubscribed. Almost every Initial Public Offering (IPO) issued through MeroShare receives millions of applications, far exceeding the total number of shares available. Because SEBON mandates that IPOs must be distributed in blocks of 10 kitta via a lottery system, calculating your exact chances of winning is crucial.
Our IPO Allotment Probability Calculator takes the total number of valid applications and the total issue size to output your exact percentage chance of winning the lottery. This helps families decide if applying from 5 different demat accounts is mathematically worth the ASBA charges.
2. Determining the NEPSE Opening Price Range
The most frequently asked question after an IPO allotment is: "At what price will this stock start trading on NEPSE?"
NEPSE has a strict mathematical formula for this. The first transaction must occur between 1 times and 3 times the company's audited Net Worth Per Share from the latest fiscal year. Our IPO Opening Range Calculator instantly provides this exact lower and upper bound, ensuring you know exactly where to place your pre-open market orders on listing day.
3. Hidden Costs: ASBA Charges
Applying for an IPO is no longer free. Nepalese commercial banks charge a C-ASBA (Application Supported by Blocked Amount) fee ranging from Rs. 0 to Rs. 100 per application.
If you are applying for 10 IPOs a year from 5 family member accounts, high ASBA charges can completely wipe out the profit of the 1 or 2 IPOs you actually win. The ASBA Charge Calculator tracks this hidden leakage and recommends banks with lower C-ASBA fees.
4. Frequently Asked Questions (FAQ)
How are IPOs allotted in Nepal?
As per SEBON guidelines, IPOs are distributed evenly in units of 10 kitta. If the issue is oversubscribed, the 10 kitta blocks are allotted through a randomized lottery software managed by the issue manager.
What is an FPO?
A Further Public Offering (FPO) is when an already listed company issues additional shares to the public to raise more capital or meet regulatory promoter-to-public ratio requirements.
How is the IPO opening range calculated?
The mathematical formula is strictly: Minimum Range = Audited Net Worth Per Share. Maximum Range = Audited Net Worth Per Share × 3.