Nepal Warehousing Closing 1,37,500 Units IPO Shares to Foreign Nepalese Immigrants From Today

Nepal Warehousing Company is closing the issue of its IPO for Foreign Nepalese Immigrants today i.e. on the 24th of Kartik. The issue had opened on 10th Kartik, 2080.

The company's issued capital is Rs. 68.75 Crores of which 20% i.e. 13,75,000 unit shares worth Rs. 13.75 Crores will be issued later for the general public. Of this public issue, 10% of the shares totaling 1,37,500 units have been allocated for Nepalese citizens working abroad, the issue of which will close today.

Out of the total 13,75,000 units, 68,750 (i.e. 5% of 13,75,000) have been set aside for mutual funds and 27,500 (i.e. 2% of 13,75,000) units have been set aside for the employees of the company. The remaining 11,41,250 units are for the general public.

Himalayan Capital is appointed as the issue manager for the IPO issuance. The minimum application quantity to be applied is 10 units and the maximum quantity is 50,000 units.

According to CDSC, 32,605 applicants have applied for a total of 7,86,220 units. Thus, the issue has already been oversubscribed by 5.71 times as of 10 AM today  morning.

ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Nepal Warehousing Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.

Nepal Warehousing Company was established under the Company Act, 2063 of Nepal to cater to the warehousing needs of the farmers, traders, millers, and businessmen who deal in the trade of grains for their commercial and industrial purposes. These actors more often face post-harvest losses, degraded product quality for further use, and most frequently face problems of keeping grains in a healthy environment for a long time. In order to keep the quality of grains stored intact for a long time, the Nepal Warehousing Company Ltd has brought the solution by installing high-quality silos of 55,000 MT capacity at three different places in province number 1, province number 2, and in Lumbini province.