IPO Allotment of Sarbottam Cement To Be Concluded on Friday; Lucky Applicants Will Get 50 Units Each via Lottery System

The IPO allotment of Sarbottam Cement Limited will take place this Friday, i.e. on 25th Falgun, 2080. The allotment program will be held at the premises of the issue manager Global IME Capital Limited, Naxal.

In a preceding issuance phase, the company allocated 2,67,000 units to Nepalese citizens working abroad and 9,30,000 units to industry-affected locals in Nawalparasi and mine excavation-affected locals in Palpa. However, only 2,48,470 units were allotted to valid applicants, leading to the inclusion of the remaining 4,87,910 unsubscribed shares into the general public pool, resulting in a total of 30,84,530 units available for subscription. Among these, 1,54,227 units each were earmarked for mutual funds and company employees, with the remaining 27,76,076 units offered to the general public.

Sarbottam Cement issued 12.9033% of its capital, amounting to Rs 4.65 Arba, equivalent to 60 lakh shares valued at 60 crores. Of these, 40% (24 lakh shares) were allocated to Qualified Institutional Investors (QIIs), and the remaining 60% (36 lakh shares) were designated for the general public, including industry-affected locals, foreign migrants, mutual funds, company employees, and the wider public audience.

As per the latest update, the CDSC reported an overwhelming response, with 10,12,384 applicants vying for a total of 53,633,990 units, valued at Rs. 19.35 Arba. The remarkable oversubscription rate of 19.32 times implies that, on average, one in every 20 applicants will successfully receive 50 units.

ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BBB+ (pronounced ICRA NP issuer rating triple B plus) to Sarbottam Cement Limited. ICRA Nepal has also reaffirmed the long-term rating of [ICRANP] LBBB+ (pronounced ICRA NP L triple B plus) and the short-term rating of [ICRANP] A2 (pronounced ICRA NP A two) to Sarbottam’s bank loan limits.