Sarbottam Cements Launches IPO Today: Here's What You Need to Know

GP Chudal


Sarbottam Cements Starts Issuing IPO from Today

Published: Feb 25, 2024
Sarbottam Cements, has kicked off its initial public offering (IPO) today, on February 25, opening up investment opportunities for the general public. This marks the second phase of IPO issuance, following earlier offerings to local residents of affected areas and Nepali migrant workers abroad.

The company is making available a total of 2,776,076 units of ordinary shares, which includes 681,530 units left over from the initial offering to locals and 267,000 units allocated for foreign migrated workers in Nepal.

Interested investors can apply for a minimum of 50 units and a maximum of 10,000 units of shares at a price of Rs 360.90 per share. The IPO subscription period is from today until February 28 (Falgun 16) for early closing, and it extends to March 10 for the final closing.

ICRA Nepal has assigned a BBB+ rating to the IPO, indicating moderate risks associated with the investment.

Global IME Capital serves as the issue manager, with NIMB Ace Capital and Prabhu Capital acting as co-issue managers for the IPO. Investors can apply through all C-ASBA approved Banks and Financial Institutions (BFIs) and the Meroshare platform.

Sarbottam Cements, located in ward no. 11, Jodeni, Sunwal Municipality of Nawalparasi District, commenced operations on February 13, 2015. The company boasts a production capacity of 3,000 tons of clinker and 3,000 tons of cement per day, utilizing VRM Technology from Denmark.

According to the auditor’s report for the fiscal year 2022/23, the company has attracted a total investment of Rs 12.22 billion, including interest accrued during the construction period. The company's payback period is estimated at 3.9 years, with a discounted payback period of 4.7 years.

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