Ghorahi Cement Believes IPO Issuance Will Resume After Due Investigation By SEBON
Fri, Jun 23, 2023 10:12 AM on IPO/FPO News, Stock Market, Latest,
Ghorahi Cement Industry Limited believes that the Securities Board of Nepal (SEBON) will resume the IPO issuance processes after investigation.
In a press release issued by the company, it stated that the company's attention has been drawn to the attempts of maligning the good name of the company by dissemination of wrong information with regard to the IPO issuance of the company.
Defending itself, the company stated that company is committed to clarifying, all allegations labelled against it with transparancy.
The company also informed that it takes full responsibility for the documents submitted to all regulatory bodies and concerned offices including financial report, credit rating report, among others prior to IPO issuance.
Ghorahi expressed concerns that the halting of the ongoing IPO issuance has been a major inconvenience.
The company denied allegations of any attempts by the promoters of the company to influence the credit rating process.
The company believes that SEBON will resume the IPO process after receiving report of the credit rating from the concerned office and investigation of any fraudulent application received during IPO applications.
Click Here to Read Company Press Release:
Earlier, CDS and Clearing Limited had issued a warning regarding fraudulent applicants during the Initial Public Offering (IPO) process of companies implicity indicating at potential wrongdoing in Ghorahi's IPO issuance.
READ MORE: CDS and Clearing Limited Warns Against Fraudulent Applications in Public Securities Issues
Following the same, SEBON had halted all processes that were underway with regard to the IPO issuance of Ghorahi Cement Industry Limited citing that they had previously requested an explanation from CARE Ratings Nepal Limited (CRNL) within a three-day ultimatum on 2080/02/03. The request was regarding the verification of whether the issuer rating assigned to Ghorahi Cement Industries for the IPO issuance complied with Rule 34(2) of the Credit Rating Regulations, 2068.
However, CRNL failed to submit the requested explanation within the given deadline. Additionally, despite the oversubscription of the public issue, Ghorahi Cement Industries extended the closing date for the submission of excess applications for the IPO.
In light of these circumstances, the IPO issuance had been halted by SEBON.
READ MORE: SEBON Halts Ongoing IPO Issuance of Ghorahi Cement Industries; But Why?
The application fee, which has been blocked during the Initial Public Offering (IPO) process of Ghorahi Cement Industry Limited, will be released once the investigation committee's report is available.
The company had issued 69,11,670 unit shares of Rs 435 per unit (including a premium of Rs 335) as Initial Public Offering to the general public from 32nd Jestha, 2080. The early closing date of this issue was on 4th Ashad. In spite of receiving over-subscription, the company extended closing date to 14th Ashad, 2080.
As per the offer letter, 79,43,801 unit shares, or 20% of the issued capital, 77,290 units have been allotted to the project-affected locals, 606,350 units have been allotted to the Nepalese citizens working abroad, 328,961 have been set aside for mutual funds and 19,530 units have been set aside for the employees of the company. Including the remaining shares after all previous allotments and reservations, a total of 69,11,670 units were floated for the general public.
