How to Apply for an IPO in Nepal Through MeroShare
Updated · 5 min read
The full ASBA flow, what the 10-unit minimum really means for your odds, when the blocked money is released, and how allotment and listing work.
An IPO application in Nepal runs on ASBA — Application Supported by Blocked Amount. Your bank freezes the application money in your own account instead of collecting it, and the block is released if you are not allotted. You need three things before you start: a demat account, a MeroShare login, and a CRN number issued by your ASBA-enabled bank.
The application
- Log in to MeroShare and open My ASBA → Apply for Issue.
- Pick the open issue and confirm it is the ordinary-public share tranche you want.
- Enter the number of units. The minimum is normally 10 units (Rs 1,000 at par); the maximum is set in the prospectus.
- Select the bank, the CRN, and confirm with your transaction PIN.
Application charges are capped at a few rupees per application and several banks waive them entirely. Apply once per demat account — duplicate applications against the same BOID are rejected, and both may be voided.
How allotment really works
When an issue is oversubscribed — nearly always — allotment is a lottery over applications, not over units. Every valid application competes as one ticket for the minimum lot. Two consequences follow:
- Applying for 100 units instead of 10 does not multiply your chance of being drawn; in a heavily oversubscribed issue it mostly blocks nine times more money for the same expected outcome.
- More demat accounts in a household means more tickets — legally, one per person, each with their own PAN and bank account. Multiple accounts for the same person are not permitted for this purpose.
If the applicant count exceeds the units available at the minimum lot, some valid applicants get nothing at all. That is arithmetic, not bad luck.
Results and refunds
Allotment is published a few days after the issue closes and shows in MeroShare under My ASBA → Application Report, alongside the public result portals. Allotted units are debited from the blocked amount and credited to your demat; unallotted applications have the block released automatically, usually within a few days of allotment. If the block is still showing a week later, the bank branch that issued the CRN is the place to chase, not the broker.
Listing day
Shares list on NEPSE some weeks after allotment and can only be sold once they are listed and credited. First-day pricing follows the ordinary rules — the pre-open session sets an opening price, and heavy first-day supply from investors who applied purely to flip is why an IPO often peaks in its first hour.
Selling on listing day is a short-term gain, taxed at the higher capital gains rate for holdings under a year, with the cost basis at the Rs 100 issue price. Record the allotment in the portfolio tracker at issue price so the gain and tax come out right.
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