Sarbottam Cement Limited IPO Allotment Concludes: Lucky 55,521 Applicants Allotted 50 Units Each via Lottery System

The IPO of Sarbottam Cement Limited concluded today (25th Falgun, 2080) at the premises of the issue manager Global IME Capital Limited, Naxal.

In a preceding issuance phase, the company allocated 2,67,000 units to Nepalese citizens working abroad 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 inclusion of the remaining 4,87,910 unsubscribed shares into the general public pool, resulting in a total of 30,84,530 units available for subscription. Among these, 1,54,227 units each were earmarked for mutual funds and company employees, with the remaining 27,76,076 units offered to the general public.

The issue had received applications from 9,58,959 valid applicants who had applied for a total of 5,05,38,310 units. The issue was oversubscribed by more than 18.20 times. 

As per the allotment module, a total of 55,521 applicants were allotted 50 units each via lottery and lucky 26 applicants allotted 1 unit extra via lottery and the remaining 9,03,438 applicants were returned with empty hands. 

In total 1,342 applicants who applied for 75,050 units were disqualified.

Sarbottam Cement issued 12.9033% of its capital, amounting to Rs 4.65 Arba, equivalent to 60 lakh shares valued at 60 crores. Of these, 40% (24 lakh shares) were allocated to Qualified Institutional Investors (QIIs), and the remaining 60% (36 lakh shares) were designated for the general public, including industry-affected locals, foreign migrants, mutual funds, company employees, and the wider public audience.

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.