Sarvottam Cement IPO: How to Apply, Price, and Deadline

GP Chudal
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Initial Public Offering

Sarvottam Cement Limited, a leading cement manufacturer in Nepal, has opened its initial public offering (IPO) through the book building method. The company is offering 11.97 lakh shares to various groups of investors, including the locals of the project affected areas, the Nepalis working abroad, and the general public.

Suggested: When will NEA IPO Float for General Public? 

The company has set the base price of its IPO at Rs 360.90 per share, which is determined by the demand and supply of the shares among the qualified institutional buyers (QIBs). The QIBs have already applied for 24 lakh shares of the company at a price range of Rs 401 to Rs 601.5 per share. The final price will be fixed after the book closure date, which is January 25, 2024.

The company has allocated 9.3 lakh shares to the locals of the industry and mining affected areas of Nawalparasi and Palpa districts. The locals can apply for the shares from January 10 to January 25, 2024, from the designated branches of Global IME Bank, Laxmi Sunrise Bank, Shine Development Bank, Garima Bikas Bank, Muktinath Bikas Bank, Nepal Investment Mega Bank, and Krishi Bikas Bank.

💲 How to apply IPO?

💲 Mero Share and IPO

The company has also allocated 2.67 lakh shares to the Nepalis working abroad. They can apply for the shares from January 10 to January 25, 2024, from the online portal of Global IME Capital, the issue manager of the IPO. The applicants need to have a bank account with Global IME Bank and a Mero Share account with any of the depository participants.

The remaining 28 lakh shares will be issued to the employees and the general public after the approval of the Securities Board of Nepal (SEBON). The general public will get a 10% discount on the base price of the IPO. The applicants need to apply for a minimum of 50 shares and a maximum of 10,000 shares.

The company has a paid-up capital of Rs 340 crore and a reserve fund of Rs 40 crore. The company aims to raise Rs 120 crore from the IPO, which will be used for expanding its production capacity, repaying its loans, and meeting its working capital requirements.

The company produces OPC and PPC cement under the brand name “Sarbottam”. The company has a production capacity of 1,500 tonnes per day and a market share of 6% in the domestic cement industry. The company has reported a net profit of Rs 32.65 crore in the fiscal year 2077/78.

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