Ghorahi Cement Industry IPO Allotment Concludes: Applicants Who Invested Upto 70 Units Got 100% Share, Huge 25,30,550 Units Disqualified
Sun, Jul 16, 2023 2:58 PM on IPO/FPO News, Latest,
The IPO allotment of Ghorahi Cement Industry Limited is concluded today at the premises of Nabil Investment Banking Limited, Naxal, Kathmandu.
Ghorahi Cement Industry Limited issued 69,11,670 unit IPO shares of Rs 435 per unit (including a premium of Rs 335) to the general public on Jestha 32, 2079.
The company faced a temporary setback in its initial public offering (IPO) as the issue was paused due to investors applying for shares without having sufficient funds. However, following a thorough investigation into the matter, the company has taken transparent and corrective measures. The company has decided to re-issue its 69,11,670 units of IPO shares to the general public from the 22nd to the 25th of Ashad, 2080.
The issued capital of the cement manufacturing company is Rs. 3.97 Arba of which 20% i.e. 79,43,801 unit shares is set aside for the public (including locals, Nepalese citizens working abroad, and the general public). Out of the total issued capital, 1% i.e. 397,190 unit shares were issued to project-affected locals of Dang District while 7,54,661 unit shares were issued to the Nepalese citizens working abroad from 18th Baisakh.
Out of the total units issued to project-affected locals, only 77,290 shares were allotted to valid applicants while the public issue for Nepalese migrant workers had under-subscribed by 19.65% or 148,311 units. Therefore the unsubscribed shares were added to the shares reserved for the general public.
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 are for the general public
The issue had received applications from 5,57,701 valid applicants who had applied for a total of 77,93,710 units. The issue was oversubscribed by more than 1.12 times.
As per the allotment module, 5,53,044 applicants who applied from 10 units to 70 units got as per applied units whereas, 4,657 applicants who applied from 80 units to 30,000 units got 70 units each however lucky 691 applicants among them got 10 unit extra as per lottery system
A total of 328,961 units were allotted to the mutual funds and 19,530 units were allotted to the employees of the company.
In total 23,852 applicants who applied for 25,30,550 units were disqualified.
Allotment Module:
The IPO result can be accessed by CDSC IPO Result, MeroShare, and Nabil Investment Banking Limited.
Overall, 80% of shares are of the promoter shareholders in the company. This IPO issue will generate Rs. 3.44 Arba for the company. Out of this Rs 2.65 Arba will be a premium amount and the rest would add to the paid-up capital.
Himalayan Capital Limited as well as Nabil Investment Banking Limited is appointed as the issue manager for the IPO issuance.
CARE Ratings Nepal Limited (CRNL) has assigned a rating of `CARE-NP BBB- (Is)’ to Ghorahi Cement Industry Limited. Issuers with this rating are considered to offer a moderate degree of safety regarding the timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.
Ghorahi Cement Industry Private Limited (GCIL) was incorporated on August 6, 2007, and its integrated cement manufacturing plant is situated in the Dang Valley of Western Nepal. The company was converted into a public limited company in March 2021 and the name has been changed to Ghorahi Cement Industry Limited (GCIL). GCIL is presently engaged in manufacturing and selling cement with a clinker capacity of 1,900 MTPD and a grinding capacity of 2,200 and has completed brownfield expansion enhancing a clinker capacity of 3,000 MTPD and grinding capacity of 1,400 MTPD. GCIL sells its product under the brand name “Sagarmatha” all over Nepal with a primary focus on the western and far western parts of the country. GCIL sells its product in the market through its 21 distributors all over Nepal.
