Applying for an IPO in Nepal used to mean standing in long bank queues with paper forms. Today, the entire process happens through Mero Share in just a few minutes. If you're applying for your first IPO, here's a complete, step-by-step walkthrough — including the mistakes that most commonly get applications rejected.
Before You Apply: What You Need
- Demat account with an active BOID number.
- Mero Share account registered and renewed for the current year.
- ASBA-enabled bank account with sufficient balance to cover your application.
- CRN (C-ASBA Registration Number) — obtained from your bank after ASBA registration, either at a branch or through mobile banking.
If you haven't set these up yet, start with our guide: How to Open a Demat Account in Nepal.
Step-by-Step: How to Apply for an IPO
- Step 1 — Log in to Mero Share: Go to meroshare.cdsc.com.np, select your DP from the dropdown, and enter your username (BOID) and password.
- Step 2 — Go to My ASBA → Current Issue: This section lists all IPOs, FPOs, and right shares currently accepting applications, along with open/close dates and offer price.
- Step 3 — Click Apply and Fill the Form: Select the company, enter the number of units (Kitta) you want — usually a minimum of 10 units — select your bank, and enter your CRN carefully.
- Step 4 — Accept Declaration and Proceed: Tick the declaration checkbox, click Proceed, and enter the OTP sent to your registered mobile or email to confirm.
- Step 5 — Check Application Report: After a few hours, go to My ASBA → Application Report to confirm your status shows "Verified" — meaning your bank successfully blocked the required amount.
Understanding the ASBA System
ASBA (Application Supported by Blocked Amount) means your money is blocked, not deducted, when you apply. It stays in your account — and in most cases continues earning interest — until the allotment result is announced. If you're allotted shares, the corresponding amount is then debited; if not, the block is released automatically.
How IPO Allotment Works
Since most IPOs in Nepal are heavily oversubscribed, allotment is decided through a computerized lottery system. Importantly, every valid application has an equal chance of winning, regardless of how many units you applied for above the minimum — applying for 50 units doesn't improve your odds over applying for the minimum 10.
Checking Your Allotment Result
- Go to My ASBA → Application Report in Mero Share after the IPO closes.
- If allotted, shares are typically credited to your Demat account within 2–3 business days.
- If not allotted, the blocked amount in your bank account is released automatically — no action needed on your part.
Common Mistakes That Cause Rejection
- Wrong CRN entry — the single most common cause of rejected applications. Never guess; verify it from your bank if unsure.
- Insufficient balance in your selected bank account at the time of application.
- Expired Mero Share account due to unpaid annual renewal — renew at least a week before major IPO closing dates.
- Applying in the last hour before closing, when server traffic spikes and applications may fail to process.
- Not checking the Application Report afterward — always confirm "Verified" status rather than assuming success from the submission message alone.
What Happens After You Get Shares?
Once IPO shares are credited to your Demat account, they behave just like any other holding. If you decide to sell them on listing day or later, you'll need to complete WACC and EDIS afterward to avoid the closeout penalty — see our guide: Mero Share WACC Calculation: Step-by-Step Guide.
Frequently Asked Questions (FAQ)
Can I apply for multiple IPOs at the same time?
Yes, as long as you have sufficient balance in your bank account to cover the blocked amount for each application simultaneously.
Does applying for more units increase my chances of allotment?
No. Nepal's lottery-based allotment gives each application an equal probability, regardless of the number of units requested above the minimum.
Can I cancel an IPO application after submitting it?
No, IPO applications generally cannot be canceled once submitted, so review all details carefully before confirming.
Conclusion
Applying for an IPO through Mero Share is quick and fully digital once your Demat, CRN, and ASBA bank account are set up. The keys to success are simple: double-check your CRN, apply early rather than at the last minute, and always confirm your application status afterward. From there, it's just a matter of waiting for the lottery result.
Discussion