Rules & regulations
SEBON new IPO rules 2026: retail discount and book-building changes explained.
Book-building IPOs price differently from the usual fixed-price issue. Two rules matter most to a retail applicant: you apply at a 10% discount to the cut-off price set by institutional bidding, and 2026 reporting describes a 50-unit minimum for retail applications. Here is how it works, and what to check before you apply.
5 min read · Updated · 25 Sep 2026
What is a book-building IPO?
Most NEPSE IPOs are fixed-price issues: the company and SEBON agree on a par-value or moderately premium price before the issue opens, and all applicants pay that same price. A book-building IPO works differently. Institutional investors (banks, funds, insurance companies) first bid to indicate the price they are willing to pay. The final issue price is determined from those bids. Retail investors then apply at a price derived from that institutional price.
Book-building is typically used by larger, established companies seeking to raise significant capital at a price closer to what the market actually values them at, rather than at par.
What a retail applicant needs to know
- 10% retail discount: SEBON’s Book Building Guidelines give general investors a 10% discount to the cut-off price. If institutions set the cut-off at NPR 200, retail applicants pay NPR 180. The discount is set by the rules, not offered by the company.
- Minimum application: reporting in 2026 describes a 50-unit (kitta) minimum for retail applications in book-built issues, against 10 units for most fixed-price IPOs. The prospectus states the minimum for each issue; go by that.
- Allotment and listing: SEBON’s issue guidelines require allotment within 20 days of an issue closing and listing within two months.
Which companies can use book-building?
Eligibility is set in SEBON’s Book Building Guidelines. The conditions include a record of profits over recent years, net worth above paid-up capital and a credit rating. SEBON said in July 2026 that it would revise the IPO and book-building guidelines, so for the current thresholds read SEBON’s directive rather than a summary.
What does the 10% discount mean in practice?
Say institutions bid and the cut-off comes out at NPR 250 per share. Retail applicants pay NPR 225, and 50 units cost NPR 11,250 blocked in your bank. Where the share trades after listing is a separate question the discount does not answer: it can list above or below either price.
Note that allotment in book-building issues may still be based on a lottery or proportional method depending on oversubscription. The discount on price does not guarantee an allotment.
How do you apply for a book-building IPO?
The application process is the same as a regular IPO: through Mero Share using C-ASBA. The prospectus will specify the retail price (post-discount), the minimum application quantity, and the open and close dates. Punji's bulk IPO tool lists open issues including book-building ones so you can apply without navigating Mero Share separately.
Sources
- SEBON implements book building method for the issuance of IPO New Business Age
- SEBON to amend guidelines and introduce new rules for IPO and book building systems Bajarko Chirfar, 15 Jul 2026
- SEBON amends Securities Issue and Allotment Guidelines: min 10 units per applicant, allotment within 20 days, listing within 2 months Sharesansar
- Securities Board of Nepal SEBON
Common questions
Answered plainly.
Under SEBON's updated book-building guidelines, general (retail) investors in a book-building IPO apply at a 10% discount to the cut-off price set by institutional bidding, and 2026 reporting describes a 50-unit (kitta) retail minimum for book-built issues. Check each prospectus, which states the retail price and minimum. These rules make book-building issues more accessible and directly beneficial to small investors.
The minimum is now 50 units (kitta) for retail individual investors in a book-building IPO. The specific floor may vary by issue; check the prospectus of each IPO for the exact retail minimum.
In a book-building IPO, institutional investors bid to set the price. Once the final price is determined, retail investors can apply at 10% below that institutional price. For example, if the institutional price is set at NPR 200, retail applicants get shares at NPR 180.
Eligibility is set in SEBON's Book Building Guidelines: a record of profits over recent years, net worth above paid-up capital, and a credit rating among the conditions. SEBON said in July 2026 that it would revise these guidelines, so check SEBON's current directive rather than a summary.
These changes apply specifically to book-building IPOs. Fixed-price IPOs (the majority of issues on NEPSE) continue under the existing rules. The discount and minimum unit changes are only for issues using the book-building method.
Read next
The rest of the guide
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- How to calculate and update WACC in MeroShareYour average buying price decides your capital gains tax. What WACC means, the exact steps, and what a wrong figure costs.
- EDIS in MeroShare: transferring shares after you sellSelling on the TMS is half the job. The transfer, the T+2 clock, and the penalty for missing the deadline.
- Right shares in Nepal: how to apply, and what happens if you don'tThe ratio, the book closure price adjustment, the application flow, and the auction of unsold rights.
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