Asian Life Insurance Company Limited (ALICL) has announced the opening of its rights share issuance from Asar 25, 2082 (July 9, 2025). The company is offering 42% rights shares based on its current paid-up capital.

This means that shareholders will receive 4.2 new shares for every 10 existing shares they own. This issuance aims to raise over NPR 1.42 billion, with each share priced at NPR 100.

Key Details of the Rights Issue

The company had set the book closure date for Jestha 16, 2082 (June 29, 2025). This means that only those shareholders who held shares until Jestha 14, 2082 (June 27, 2025) are eligible to apply for the rights shares. The application period for the rights issue will begin from Asar 25, 2082 (July 9, 2025) and will remain open until Shrawan 13, 2082 (July 28, 2025).

Application Process

• Eligible shareholders (who held shares before the book closure date) can apply for rights shares.

• Applications can be submitted through:
  • Muktinath Capital

  • Selected branches of Muktinath Bikas Bank (e.g., Biratnagar, Pokhara, Nepalgunj, etc.)

  • Asian Life Insurance offices

  • ASBA-approved banks and financial institutions

  • Online via Meroshare (using C-ASBA system)

Why This Matters to Investors

• The rights issue provides existing shareholders with an opportunity to increase their holdings at par value.

• The company’s credit rating of A- suggests good ability to meet financial obligations.

• After the rights issuance, the company will have a stronger capital base of NPR 4.82 billion, which may support future business expansion.

Citizens Mutual Fund is opening its public offering for the Citizens Sadabahar Yojana from Asar 13 (June 26, 2025). This open-ended mutual fund is being launched under the fund sponsorship of Citizens Bank International Limited and will be managed and sold by Citizens Capital Limited.

Out of the total 50 million units, 42.5 million units will be issued to the public. The fund is priced at Rs. 10 per unit, and investors can apply for a minimum of 100 units.

Applications can be submitted through the Meroshare online system, starting from Asar 13, with an early closing date of Asar 17 and the final closing date being Asar 27, if fully subscribed earlier.

What Makes This a Unique Investment?

The Citizens Sadabahar Yojana is an open-ended mutual fund, meaning investors can buy or sell units even after the initial offering period. However, it will not be listed on the stock exchange. Instead, investors can buy or sell units later through specified fund distributors at their convenience.

Where Will the Fund Be Invested?

According to the fund’s structure, the collected amount will be invested with the following limits:

• Up to 75% in the stock market

• Up to 10% in fixed deposits

• Up to 5% in call deposits

• Up to 10% in bonds and debentures

This structure provides a balanced investment approach, with a major portion in the equity market and the rest in safer financial instruments.

In the past month, Nepal’s share market has shown only slight growth, with the NEPSE index rising by just 1.68%. However, the hydropower sector has emerged as the top-performing sector, recording a sharp 7.89% increase during the same period. This rise comes even as several other sectors faced a decline.

Some hydropower companies have seen their stock prices jump by as much as 92% within a month. Two of the most notable performers are Butwal Power Company and newly listed Pure Energy, both of which have reached their highest-ever market prices.

Not only has the sector index grown, but trading volume and turnover have also increased significantly. A month ago, hydropower stocks accounted for around 50% of the total market turnover. Now, that figure has surged to nearly 70%. For example, on a recent trading day, out of a total NPR 9.08 billion turnover, NPR 6.03 billion (or 66%) came from the hydropower sector alone.

Hydropower Gains 7.8% in One Month

Why is Hydropower Attracting More Investors?

The key reason behind this increased interest is the improving financial reports of hydropower companies and the expectation of even better results. According to Bharat Ranabhat, former president of the Stock Brokers Association of Nepal, falling interest rates have reduced the financing costs of hydropower projects. This has positively impacted the profit margins of these companies.

Investors believe that the upcoming fourth-quarter financial reports will be even more favorable. As explained by investor Subash Chandra Dhungana, electricity production increases during the monsoon season, boosting income. Traditionally, most of a hydropower company’s annual earnings are made in the months of Baisakh, Jestha, and Ashad — the fourth quarter of the Nepali fiscal year.

In the share market, the banking and hydropower sectors are often seen as the two strongest. Historically, when banks underperform, hydropower tends to rise, and vice versa. This pattern is visible again. While banks are currently struggling with rising non-performing loans (NPLs) and increasing loan loss provisions, hydropower is gaining strength due to financial improvement.

Other sectors face challenges in this quarter. For example, banks, development banks, and finance companies are affected by rising NPLs, which directly reduce profits. Insurance companies, both life and non-life, have seen a rise in share numbers due to rights and bonus shares; however, business growth has not kept pace, resulting in a decline in earnings per share.

Production and processing companies are also under pressure due to weak demand and slow sales. These difficulties are not present in the hydropower sector. Power produced is sold as per agreements, and payments are received promptly, which provides stability and confidence to investors.

Big Investors Turn to Hydropower

With other sectors struggling, large investors have shifted their focus to hydropower. Companies with larger capital have seen both prices and trading volumes rise. One key feature of this sector is the wide range of company sizes. Hydropower firms in Nepal have paid-up capital ranging from NPR 134 million to over NPR 8.72 billion. This allows both big investors and general shareholders to find suitable options in this sector. The share prices also vary widely — from under NPR 200 to as high as NPR 1,850 per share — increasing the sector’s overall appeal.

Spotlight on Butwal Power Company

Among all hydropower companies, Butwal Power Company (BPC) has gained significant attention. Its share price is at a record high, and it consistently ranks among the top five in daily trading volume. BPC had planned to sell 3.1 million shares of Nyadi Hydropower, but the Securities Board of Nepal (SEBON) halted the sale. SEBON stated that since BPC’s directors are also involved in Nyadi, the sale goes against regulatory rules.

Despite this, rumors in the market suggest that BPC may still make a huge profit by selling those shares at nearly four times their original price. The shares were initially valued at NPR 100 each, and now the market value is around NPR 440. If the sale goes through, BPC could earn over NPR 1 billion in profit, which might be distributed as dividends to shareholders.

Other hydropower companies are also rumored to be planning similar share sales, leading to expectations of strong fourth-quarter earnings from asset sales.

Conclusion

The hydropower sector is currently the most attractive area of Nepal’s stock market. With better financial performance, timely earnings, low risk of payment delays, and a wide range of investment options, it has caught the attention of both large and small investors. As other sectors struggle, hydropower continues to shine, making it the clear leader in this month’s share market activity.