Ghorahi Cement Industry IPO Closing From Today For Nepalese Employed Abroad; Deadline Extended for Locals Till Jestha 17
Tue, May 16, 2023 10:22 AM on Latest, IPO/FPO News,
Ghorahi Cement Industry Limited is closing the issue of its IPO to the Nepalese citizens working abroad from today i.e. 2nd Jestha, 2080, and has extended the IPO issue deadline for project-affected locals till 17th Jestha. The issue had opened on 19th Baisakh, 2080.
The issued capital of the cement manufacturing company is Rs. 3.97 Arba of which 20% i.e. 79,43,801 unit shares will be issued to 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 have been allocated to project-affected locals of Dang District. Meanwhile, 19% of the company's issued capital i.e. 75,46,611 unit shares will be issued later for the general public. Of this general public issue, 10% of the shares totaling 7,54,661 units shares have been allocated for Nepalese citizens working abroad, the issue of which will close today.
The shares will be issued for Rs 400 per unit (including a premium of Rs 300) for the locals and for Rs 435 per unit (including a premium of Rs 335) for the Nepalese citizens working abroad.
Himalayan Capital Limited as well as Nabil Investment Banking Limited has been appointed as the issue manager. The promoter-public share ratio will be 80: 20 after this IPO. This IPO issue will generate Rs. 3.44 Arba for the company. Out of this Rs 2.645 Arba will be a premium amount and the rest would add to the paid-up capital.
According to CDSC, 13,236 applications have been received through Nepalese citizens working abroad for a total of 595,520 units so far.
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.
