IPO Proposal of Ghorahi Cement Industry Finally Approved By SEBON; Company to Issue IPO Worth Rs 3.44 Arba Soon

The Securities Exchange Board of Nepal (SEBON) has approved the proposed IPO issue of Ghorahi Cement Industry Limited on Baisakh 06, 2080.

The company will now issue 7,943,801 unit shares. Out of the entire number of shares, 3,97,190 unit shares are reserved for the project-affected local people while the remaining 75,46,611 unit shares are reserved for the general public. The company will issue the IPO by adding a premium of Rs 300 to the face value of Rs 100 totaling to Rs. 400 for the project-affected locals. Similarly, for the general public, shares will be issued at Rs 435 after adding a premium of Rs 345 to the face value.

The paid-up capital of the company is Rs. 3.17 Arba which will reach Rs. 3.97 Arba after IPO issuance. Overall, 80% of shares are of the promoter shareholders in the company and the remaining 20% of shares will now be issued to the public. 

This IPO issue will generate Rs. 3.44 Arba for the company. Out of this Rs 2.645 Arba will be premium amount and the rest would add in the paid up capital. Himalayan Capital Limited as well as Nabil Investment Banking Limited has been appointed as the issue manager. The proposal was submitted on Shrawan 09, 2079 in the SEBON.

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.

About the Company

Ghorahi Cement Industry Private Limited (GCIPL) was incorporated in August 6, 2007 and its integrated cement manufacturing plant situated in Dang valley of Western Nepal. The company was converted into 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 clinker capacity of 1,900 MTPD and grinding capacity of 2,200 and has completed brownfield expansion enhancing 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 primary focus towards western and far western part of the country. GCIL sells its product in the market through its 21 distributors all over Nepal. 

GCIL has an operational track record of more than 9 years in cement manufacturing and is promoted by two leading business groups of Nepal being Sanghai family brothers (Triveni Group) and Vishal group. Both the groups are involved in diversified business of banking, insurance, manufacturing, trading and other businesses. Sanghai family has around 2 decades of experience in cement manufacturing and currently has been operating standalone grinding units. Vishal Group also has a considerable presence in the financial sector of Nepal and is the promoter of banks. Also, Vishal group has strong presence in import and trading of fast-moving consumer goods in Nepal with established distribution network. The company has five directors on its board and is chaired by Mr. Purshottam Lal Sanghai. The Chairman is supported by a team of qualified professionals in all the departments with wide experience in cement industry