Hydropower IPOs: why Nepal's energy sector keeps oversubscribing
Hydropower IPOs in Nepal are consistently 30x to 80x oversubscribed. We looked at 5 years of data to understand why — and what it means for your application strategy.
Aarav Shrestha
Research, LaganiLabs
Nepal has some of the world's most abundant hydropower resources. With over 6,000 rivers and an estimated 83,000 MW of theoretical hydropower potential, energy is one of the most active sectors on NEPSE — and its IPOs are consistently among the most oversubscribed.
5 years of hydropower IPO data
We analysed 47 hydropower IPOs listed on NEPSE between 2021 and 2026. The average oversubscription rate was 52x. In peak years (2022–2023), several offerings exceeded 100x subscription. This is not a fluke — it is structural.
- Avg. oversubscription: 52x (2021–2026)
- Highest recorded: 118x (Likhu Khola Hydropower, 2022)
- Lowest recorded: 14x (Upper Modi Hydro, 2024)
- 38 of 47 IPOs listed above offer price on day 1
Why investors keep applying
Three factors drive the demand: energy sector tailwinds (Nepal's electricity export agreements with India and Bangladesh), historically strong listing gains, and a perception of 'safe' state-adjacent businesses. This creates a self-reinforcing cycle.
LaganiLabs automatically tracks all upcoming hydropower IPOs in the IPO Calendar tab. Enable Auto Apply so you never miss an opening.
What this means for your strategy
With 50x+ oversubscription, allotment is almost entirely luck-based. The only statistical lever you control is the number of BOIDs you apply from. A family of 6 applying from 6 separate accounts has 6x the chance of a single applicant. This is exactly the use case LaganiLabs was built for.