Purwanchal Lube Oil (PLO) To Issue IPO Through Book Building Process | Appoints Prabhu Capital As Issue Manager
February 2, 2023 | Investopaper
Purwanchal Lube Oil Limited (PLO) is going to issue Initial Public Offering (IPO) through the book building method. For this purpose, the company has appointed Prabhu Capital Limited as issue and sales manager.
An agreement has been inked between the company and Prabhu Capital in this regard. Mr. Bholeshwar Dulal, Managing Director of Purwanchal Lube Oil and Mr. Dinesh Thakali, Managing Director of Prabhu Capital signed the agreement for IPO issuance.
The company is planning to sell 400,000 shares. The company will issue shares to the locals of Sundarharaincha Municipality of Morang district, employees of the company, institutional investors and general public.
At present, Purwanchal Lube Oil has a paid-up capital of Rs 20 crores with reserve fund of Rs 23 crores.
The company, which has its head office in Sundarharaincha Municipality of Morang, has been producing PLO brand lubricants.
Book Building is an alternative method of the public offering. In this method, the issue manager or book runner creates, collects, and records the demand for securities from the investors to determine the true value of the securities. The issue manager or the underwriter determines the price of the public issue based on the demand from various potential investors.
Through Book Building Method, a company wishing to issue shares at a premium will be able to issue an Initial Public Offering (IPO) at more than Rs 100.
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