KATHMANDU: A sharp rise in gold prices has triggered an unprecedented surge in demand for silver in Nepal, propelling Himalayan Bullion Company Ltd. to record sales and prompting the company to move ahead with plans for an initial public offering (IPO).

When gold prices crossed an all-time high of NPR 340,000 per tola in mid-January, long queues of customers formed outside Himalayan Bullion’s showroom as buyers increasingly turned to silver, which offered a more affordable alternative.

“Demand for silver was so strong that customers had to wait in line to make purchases,” recalled Bishma Prasad Gautam, Chairman of Himalayan Bullion.

According to the Federation of Nepal Gold and Silver Dealers’ Association, gold prices have since eased to NPR 285,500 per tola as of Saturday. However, Gautam said the period of record-high gold prices significantly boosted silver’s appeal among both consumers and investors.

“Individual investors are increasingly viewing silver as an investment asset. As a result, both our sales and trading volumes have grown substantially,” he said.

The company currently trades between 20 and 30 kilograms of silver daily, depending on market conditions.

Nearly NPR 10 billion turnover in nine months

The surge in silver demand has translated into extraordinary business growth for Himalayan Bullion.

According to the company’s latest credit rating report published by CARE Ratings Nepal, Himalayan Bullion generated NPR 9.78 billion in revenue during the first nine months of fiscal year 2025/26 (2082/83 BS).

The figure marks an exceptional jump compared with its annual revenue of just NPR 302 million in fiscal year 2024/25 (2081/82 BS) and NPR 474 million in 2023/24 (2080/81 BS).

Gautam said demand had become so intense that the company struggled to maintain adequate supplies.

“We produce 500-gram and one-kilogram silver bars for the market. Earlier, customers had to queue for purchases. Although market sentiment has softened recently due to psychological concerns, we continue to trade 20 to 30 kilograms of silver every day,” he said.

Silver imports soar

Official customs data also reflects the growing appetite for silver.

According to the Department of Customs, Nepal imported 104,290 kilograms of silver worth NPR 3.274 billion during the last fiscal year, up sharply from 50,053 kilograms valued at NPR 726 million in the previous year.

Diyesh Ratna Shakya, Senior Vice President of the Federation of Nepal Gold and Silver Dealers’ Association, said investors increasingly shifted to silver as gold became prohibitively expensive.

“When gold prices surged, many investors turned to silver as a safer and more affordable investment option,” he said.

However, he noted that both gold and silver markets have recently slowed due to weak consumer demand.

“With no major festival or wedding season, gold sales have remained sluggish. Nepalis could still afford gold when prices were around NPR 200,000 per tola, but purchasing power has weakened significantly at current levels. Silver trading has also slowed,” Shakya said.

IPO within a year

Himalayan Bullion is also preparing to enter Nepal’s capital market.

The company recently completed its credit rating for an IPO and received a moderate risk rating for its capacity to meet financial obligations.

Chairman Gautam said the company aims to issue shares to the public within the next year.

“The credit rating process has been completed. We will now submit the required documents to the regulator. Once we receive approval from the Securities Board, we will move forward with the IPO. We expect to complete all preparations and launch the public offering within a year,” he said.

The company plans to issue 12.5 million ordinary shares with a face value of NPR 100 each, raising NPR 1.25 billion.

Jyoti Capital Ltd. has already been appointed as the issue and sales manager. The IPO will be offered to the general public, including Nepalis working abroad, collective investment funds and company employees.

Jyoti Capital is currently handling regulatory coordination, documentation and all technical preparations related to the proposed public offering.