Ghorahi Cement Industry IPO Collects Rs. 4.26 Arba Till Second Day; Oversubscribed 1.42 Times from 288,456 Applicants

CDS & Clearing Limited (CDSC) has reported the data of public IPO collection of Ghorahi Cement Industry Limited as of 5 pm today i.e. Ashad 01.

The company has been issuing 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 is on 4th Ashad and if the issue is not fully subscribed, it can be extended up 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 are for the general public.

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. Applications can be placed for a minimum of 10 units and a maximum of 10,00,000 units.

According to CDSC, 288,456 applicants have applied for a total of 98,02,460 units. Thus, the issue is already oversubscribed by 1.42 times 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.