IPO Allotment Of Ghorahi Cement Industry Concluded [IPO Result]

July 16, 2023 | Investopaper

IPO Allotment Of Ghorahi Cement Industry Limited

Nabil Investment Banking Limited, the issue manager for the initial public offering (IPO) of Ghorahi Cement Industry Limited, has concluded the IPO allotment process on Sunday.

After the allotment, 553,044 individuals who submitted applications ranging from 10 units to 70 units, received the exact number of units they applied for. On the other hand, 4,657 applicants who requested between 80 units and 30,000 units were each granted 70 units with 691 applicants among them received an additional 10 units.

A total of 5,57,701 valid applicants had subscribed for the shares.

To view the IPO result of Ghorahi Cement Industry Limited, click the link below:

IPO Result Of Ghorahi Cement Industry Limited

Second Phase: IPO To General Public

Ghorahi Cement Industry Limited had closed the IPO to the general public from Ashad 25, 2080 BS. The company had re-opened the IPO from Ashad 22, 2080 BS.

Earlier on Ashad 4, the public offering was halted by SEBON due to the concern over fake application in large amounts.

After issuing shares to the locals and foreign employed Nepalese in the first phase, the company had sold shares to the general public in the second phase of the Initial Public Offering (IPO).

The company had floated 72,60,161 shares in the second phase of the IPO. This included the shares that remained under-subscribed in the first phase. Out of the total shares, 3,28,961 shares were allotted to the mutual fund schemes while 19,430 shares were reserved for the employees of the company. Hence, the general public could participate in the remaining 69,11,670 shares.

One could apply for a minimum of 10 shares and a maximum of 10,00,000 shares.

First Phase: IPO To Locals & Foreign-Employed Nepalese

In the first phase of the IPO, the company had issued shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Baisakh 19, 2080 BS.

The IPO to the Nepalis in foreign employment was closed on Jestha 2, 2080 BS. Similarly, the IPO to locals was closed on Jestha 17, 20080 BS.

The company had issued 1 percent of the issued capital i.e. 3,97,190 shares to the locals of Dang and Rolpa District. Locals of Ward number 1,2,3,4,14,15,17,18,19 of Ghorahi Sub Metropolitan City of Dang District Municipality, Ward Number 3 & 4 of Banglachuli Rural Municipality of Dang District and Ward number 3 & 4 of Triveni Rural Municipality of Rolpa District could apply for the shares. 

The company had sold 3,97,190 shares to the locals at a price of Rs. 400 per share i.e. Rs. 300 premium over the par value of Rs. 100.

Likewise, the company had sold 7,54,661 shares to the Nepalese in foreign employment (10 percent from general public’s quota) at the rate of Rs. 435 per share.

Locals had subscribed for only 77,290 shares while the foreign employed Nepalese applied for 6,06,305 shares.

In total (including first and second phase), the company will sell 7,943,801 shares in the IPO. Hence, Ghorahi Cement Industry plans to raise Rs. 3.44 Arba through the sale of shares in the public offering.

For this purpose, Securities Board Of Nepal (SEBON) has granted permission to the company on Baisakh 6, 2080 BS. The company has submitted application to the board on Shrawan 9, 2079 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.

The company has appointed Nabil Investment Banking Limited and Himalayan Capital Limited as issue and sales manager.

The agreement for public offering was inked by Mr. Aditya Sanghai, director of Ghorahi Cement Industry, Mr. Parameshwar Pant, CEO of Himalayan Capital, and Mr. Manish Narayan Joshi, CEO of Nabil Investment Banking Limited.

After the IPO (if fully subscribed), the general public along with locals will own 20 percent share in the company while the promoters will hold the remaining 80 percent ownership.

Ghorahi Cement Industry, a subsidiary of Triveni Group in partnership with Vishal Group, was registered in the year 2064 BS. It started commercial production by producing clinker from its own limestone mine in 2069 BS. It currently produces  2 million metric tonnes clinker annually.

Recommended:

How to apply IPO/FPO/Right Share through Mero Share?

Upcoming Initial Public Offerings (IPO) In Nepal

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