January 28, 2024 | Investopaper
Maruti Cements Limited is planning to issue Initial Public Offering (IPO). For this purpose, the company has submitted the application to the Securities Board Of Nepal (SEBON) on Poush 26, 2080 BS seeking permission to issue the shares. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
If approved by SEBON, the company plans to sell 1,16,00,000 shares to the public. The IPO price is Rs. 277 per share (Rs. 100 is par value and Rs. 177 is the premium). Hence, the total pubilc issue amounts to Rs. 3.21 Arba.
The company has appointed Nabil Investment Banking Limited as issue and sales manager for the IPO. The agreement for public offering has already been inked between Maruti Cements and Nabil Investment Banking Limited on this regard.
In the first phase, the company will issue shares to the locals and the foreign employed Nepalis. Likewise, after the first phase, it will sell shares to the general public, including the mutual fund schemes and the employees of the company, in the second phase of the IPO.
The company has already approved the agenda of floating IPO at a premium price from its annual general meeting.
About Maruti Cements Limited
Maruti Cements Limited, established on October 31, 1994, is a Cement Manufacturing Plant Located at Mirchaiya of Siraha district. It has the clinker production capacity of 1500 MTPD and grinding capacity of 2000 MTPD. The company produces OPC cement under the brand name “Maruti”.
The cement industry is established with the joint investment of by Rathi group and Goyal group of companies.
The industry presently holds a mining license for a single mine situated in Jhanki Khola (Katari). The estimated limestone deposit in this location is approximately 140 million tons, providing enough resources to sustain a clinker unit with an enhanced capacity of 3300 metric tons per day for a duration of 60 years.