Ghorahi Cement Industry Resumes Issue of 69,11,670 Units IPO Shares For General Public From Today

Ghorahi Cement Industry Limited has decided to re-issue its 69,11,670 units of IPO shares to the general public. The re-issuance will take place from today i.e. on the 22nd to the 24th of Ashad, 2080, ensuring a fair and transparent opportunity for interested investors to participate in the IPO.

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 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 will now be 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.

Currently, the Meroshare application, through which the applicants can apply for the shares, has no features to add or reduce the previously applied share quantity or to cancel the previous application. As a result, the interested applicants need to cancel the previous application by submitting a written application stating the same to their respective C-ASBA BFI. Thereafter, they can re-apply for the IPO shares for the desired share units via the Mersohare facility. 

If the issue is not subscribed within three days then the company can extend the closing date for a maximum 7 days more. 

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.

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 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. The company 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. The company 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. The company sells its product in the market through its 21 distributors all over Nepal.

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