Last Day to Apply for Locals IPO of Ghorahi Cement Industry; Issue Closing Today

Ghorahi Cement Industry Limited is closing the issue of its IPO for project-affected locals today i.e. on 17th Jestha, 2080. The issue had opened on 18th Baisakh.

The issued capital of the cement manufacturing company is Rs. 3.97 Arba of which 20% i.e. 79,43,801 unit shares will be issued to 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 have been allocated to project-affected locals of Dang District. Meanwhile, 19% of the company's issued capital i.e. 75,46,611 unit shares will be issued later for the general public. Of this general public issue, 10% of the shares totaling 7,54,661 units shares were allocated for Nepalese citizens working abroad, the issue of which closed on 2nd Jestha, 2080.

The shares are being issued for Rs 400 per unit (including a premium of Rs 300) for the locals and Rs 435 per unit (including a premium of Rs 335) for the Nepalese citizens working abroad.

Himalayan Capital Limited as well as Nabil Investment Banking Limited are appointed as the issue manager. The promoter-public share ratio will be 80: 20 after this IPO. This IPO issue will generate Rs. 3.44 Arba for the company. Out of this Rs 2.645 Arba will be a premium amount and the rest would add to the paid-up capital.

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.

Closing Notice