IPO for General Public: Ghorahi Cement Industry To Issue 69,11,670 Unit IPO Shares from 32nd Jestha

Ghorahi Cement Industry Limited has published an offer letter to issue its Initial Public Offering (IPO) to the general public.

The company will be issuing 69,11,670 unit shares of Rs 435 per unit (including a premium of Rs 335) 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.

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 published today, 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, the issue of which will open from 32nd Jestha, 2080.

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 has been 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 (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.

Offer Letter

Things to Know Before Applying for IPO of Ghorahi Cement Industry