Sarbottam Cement (SARBTM) IPO Allotees Enjoy 148.02% Gain in Just 5 Trading Days

Sarbottam Cement Limited (SARBTM) has become a standout performer, surpassing all anticipations since its Initial Public Offering (IPO). Established in 2010 under the esteemed Saurabh Group banner, the company commenced operations in February 2014. Nestled in Neupane Tower, Tinkune, Kathmandu, SARBTM's factory, located approximately 240 km away in Sunwal, Nawalparasi, covers 30 bighas of land. Utilizing cutting-edge European production methods, it proudly introduced Nepal's first Vertical Roller Mill (VRM), slashing energy consumption by up to 50% and solidifying its position as a trailblazer in eco-friendly cement production within the nation.

The IPO launch of SARBTM stirred significant interest. Initially priced at Rs. 360.90 per share, determined through meticulous book-building, the IPO witnessed an overwhelming response from the public.

A total of 60 lakh units of shares, constituting 12.9033% of the total issued capital of Rs 4.65 arba, were issued during SARBTM's IPO. Out of this, 24 lakh units (40%) were allocated to qualified institutional investors, while the remaining 36 lakh units (60%) were made available to the general public, including employees, foreign migrant workers, mutual fund schemes, and project-affected locals. During the primary share distribution to institutional investors, a 'cutoff price' of Rs 401 was set for Sarbottam Cement. Following regulatory guidelines, shares were offered to the general public at a discounted rate, specifically 10% lower than the 'cut-off' price, translating to Rs 360.90 per share for common investors.

On March 18, 2024, SARBTM debuted on the Nepal Stock Exchange (NEPSE) with a total of 4,65,00,000 shares, with an opening range set at Rs. 185.36 to Rs. 556.08. Impressively, the stock soared to an opening price of Rs. 556 on March 19.

Sarbottam Cement has not only met but surpassed market expectations, demonstrating an outstanding market performance. As of March 26, 2024, the current market price stands at an impressive Rs. 895.10, marking a substantial increase from the IPO price of Rs. 360.90 per share for the general public. The company has experienced a gain of Rs. 339.1 or 60.98% from the opening price of Rs. 556 in just five trading days. Investors fortunate enough to secure shares during the IPO have witnessed a remarkable gain of 148.02% during these trading days. The total turnover during this period is an impressive Rs. 5.6 Crores with a number of transactions of 1,739. 

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