Lock-In period for shares of four hydropower companies ending in Asar

KATHMANDU, JUNE 9: The lock-in period for promoter and local shares of four hydropower companies is set to expire during the upcoming Nepali month of Asar (mid-June to mid-July), potentially impacting the stock market due to an increase in tradable shares.

Once the lock-in period ends, these shares can be traded on the secondary market like ordinary shares, and at market prices. This often leads to an increase in share volume, which can put downward pressure on prices. To mitigate market surprises, the concerned companies have already issued public notices informing investors about the upcoming release of these locked-in shares.

The companies whose lock-in periods are ending in Asar are Bindhyabasini Hydropower, Dordi Khola Jal Vidyut Company, Himalayan Hydropower, and Upper Solu Hydro Electric Company.

• Bindhyabasini Hydropower: The lock-in period for 9,671,088 shares held by promoters, employees, and locally affected residents will expire on Asar 2 (June 16).

• Dordi Khola Jal Vidyut Company: A total of 8,412,960 shares held by promoters, employees, and local stakeholders will be unlocked on Asar 7 (June 21).

• Himalayan Hydropower: The lock-in period for 9,021,115 shares owned by promoters, employees, and project-affected locals will end on Asar 27 (July 11).

• Upper Solu Hydro Electric Company: The largest volume, 11,581,650 shares, will become tradable after the lock-in period ends on Asar 29 (July 14).

Investors are advised to monitor these developments closely, as the sudden availability of large volumes of shares in the market can influence stock prices and overall trading dynamics.