IPO Issue of Sarbottam Cement Limited Closing Today; Oversubscribed 10.20 Times So Far
Wed, Feb 28, 2024 8:46 AM on IPO/FPO News, Latest,
Sarbottam Cement Limited is closing the issue of 27,76,076 units of IPO shares through the book-building process from today i.e. on 16th Falgun. The issue opened on 13th Falgun, 2080 for the general public.
In a prior issuance, the company allocated 2,67,000 units to Nepalese citizens working abroad, fully allotting them, 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 addition of the remaining 4,87,910 unsubscribed shares to the general public pool, resulting in a total of 30,84,530 units available for subscription. Among these units, 1,54,227 units each are reserved for mutual funds and company employees, while the remaining 27,76,076 units are open to the general public which will close today.
In total Sarbottam Cement is to issue 12.9033% of its issued capital amounting to Rs 4.65 Arba, equivalent to 60 lakh shares valued at 60 crore. Among these shares, 40% (24 lakh shares) have been allocated to Qualified Institutional Investors (QIIs), while the remaining 60% (36 lakh shares) are designated for the general public. This includes industry-affected locals, foreign migrants, mutual funds, company employees, and the general public at large.
Global IME Capital is appointed as the issue manager, and the IPO application process allows a subscription for a minimum of 50 units and a maximum of 10,000 units. The share price for common investors stands at Rs. 360.90 per share, determined through the book-building method.
According to CDSC, a total of 5,24,078 applicants have applied for a total of 2,83,27,610 units worth Rs. 10.22 Arba. Thus, the issue has been oversubscribed by 10.20 times as of 10 AM yesterday.
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.
