IPO craze is increasing in Nepal mainly due to memes about share market circulated on social media. People who have no Idea about share market are also applying for IPO just to follow social media trends.
Although social media trends is not only the factor behind increasing trends for applying IPO in Nepal. But we can say that social media trends is the main factor.
How IPO craze become trends on social media ?
Scam 1992 Web Series of Harshad Mehta created hype about share market on social media. Student's desire of being like Harsad Meheta with small investment lead to IPO craze in Nepal. Many people get attracted on IPO after knowing about guaranteed Profit and easy access on share market through online.
Reasons Behind IPO craze in Nepal
1. Social Media trends : The main factor is the social media trends. People started investing on IPO following the social media trends. Due to the increasing number of applicants only the few lucky applicants gets 10 units of Share though IPO. Since only few people get share through IPO, the IPO topic always become trends on IPO allotment day.
2. Scam 1992 Web Series effect : Students and Youths who watched Scam 1992 Web Series started dreaming of becoming like Harshad Mehta. Students who do not have much investment but wants to invest in Share market, IPO become the best alternative for them. The popularity of the web series lead to share market craze in Nepal.
3. Micro Investment of one thousand : People can start their share market journey through small investment of one thousand by applying for IPO. If people get alloted, then their is guaranteed Profit of more then 200%.
4. Eassy access through online : People can apply for IPO with a single click from their own smartphone. The online system has attracted a lot of students and youths in Share Market. People investing in secondary market has also increased due to online facility.
5.Guaranteed Profit : People who started to investing in IPO started gaining a guaranteed profit of more than 200%. Consequently, they told their friends and relatives, ultimately boosting the volume of people grabbing for the almost-sure profits that everyone was talking about.