IPO Allotment: Sarbottam Cement Allotted Shares to Locals, 73.28% of Shares Were Unsubscribed

Sarbottam Cement Limited has successfully concluded the allotment of IPO shares designated for industry-affected locals of Nawalparasi District and mine excavation-affected locals of Palpa District. The allotment concluded today i.e. the 2nd Falgun, 2080, at the premises of the issue manager, Global IME Capital, located in Kathmandu.

The company had offered a total of 9,30,000 units of IPO shares through a book-building process, with a set price of Rs. 360.90 per unit for the specified group of locals. The subscription period for this IPO ran from 25th Poush to 25th Magh, 2080, during which interested applicants were allowed to apply for a minimum of 50 units and a maximum of 10,000 units.

The response to the IPO was noteworthy, as evidenced by a total of 1,224 applications received for the 248,503 unit shares, amounting to Rs. 8.96 Crores. To facilitate the application process, a network of 11 collection centers, including six in Palpa District and five in Nawalparasi District, was set up.

Following the necessary verification and validation procedures, it was discovered that five applicants had inadvertently applied for an insufficient number of shares, resulting in 33 shares being canceled. The remaining 1,224 applications, representing a total value of Rs. 8.96 Crores or 2,48,470 unit shares, were deemed valid and included in the book-building process.

Since the number of valid applications was less than the available shares, a total of 2,48,470 shares were allotted among the eligible applicants, ensuring a minimum of 50 shares for each. Thus, the remaining 6,81,530 units will be soon issued to the general public along with 24,03,000 units, making a total of 30,84,530 units to be released.

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Global IME Capital.

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.