Kathmandu, May 7 -- Prolonged delays in approving initial public offerings (IPOs) have disrupted capital mobilisation plans and affected project execution and business expansion, stakeholders said.

The impact has been most visible in the hydropower sector, where developers say financing structures have been strained due to delays in equity mobilisation.

Uttam Bhlon Lama, vice-president of the Independent Power Producers' Association, Nepal (IPPAN), said projects are facing funding gaps as bank financing plans are tied to expected IPO proceeds.

He said companies typically structure projects with 70 percent bank financing, with the remaining 30 percent raised through public share issuance. Delays in issuing shares have left several proje...