Sarbottam Cement Closing Second Phase of IPO from Today
February 28, 2024 | Investopaper
After issuing the shares to the locals and the foreign employed Nepalis in the first phase, Sarbottam Cement Limited is currently selling shares to the general public in the second phase phase of the initial public offering (IPO). The IPO to general public is open from Falgun 13, 2080 BS.
The company is issuing 27,76,076 shares to the general public at a price of Rs. 360.90. This includes the shares that remained undersubscribed in the first phase as well. Likewise, the company has allotted 1,54,227 shares to the mutual fund schemes while 1,54,227 shares are reserved for the employees of the company.
Due to oversubscription of shares, the public offering will close on Falgun 16, 2080 BS.
Interested investors can apply for a minimum of 50 shares, and a maximum of 10,000 shares.
First Phase of IPO
In the first phase of the IPO, the company had sold shares to the locals of the project affected areas and to the Nepalis in Foreign Employment from Poush 25, 2080 BS.
The IPO to the foreign-employed Nepalis was closed on Magh 10, 2080 BS.
Similarly, if fully subscribed, the IPO to locals was set to close on Magh 10, 2080 BS. However, due to under-subscription until that period, the deadline for application was extended until Magh 25, 2080 BS.
The company had issued 267,000 shares to the Nepalis in foreign employment (10 percent from general public’s quota).
Likewise, the company floated 9,30,000 shares to the locals of project-affected wards of Nawalparasi and Palpa district.
Interested locals and foreign employed Nepalis could apply for a minimum of 50 shares and a maximum of 10,000 shares at a price of Rs. 360.90.
In total, the company plans to sell 36,00,000 shares at a price of Rs. 360.90. Thus, the public issue amounts to Rs.129.92 crores in the public offering.
For this purpose, Securities Board of Nepal (SEBON) had given permission to the company on Poush 3, 2080 BS. The company had submitted the application to the board on Mangsir 18, 2080 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
The company has appointed Global IME Capital as an issue manager. Likewise, Prabhu Capital and NIBL Ace Capital have been appointed as co-issue manager.
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About Sarbottam Cement Limited
Sarbottam Cement Limited was established in October 2010 as a private limited company. Later in July 2019, it was transformed into a public company in order to issue shares to the general public.
The company produces and sells clinker and cement, mainly OPC and PPC cement under the brand “Sarbottam”. The production capacity of the company is approximately 1 million metric tons per annum (MTPA) for both clinker and grinding.
Sarbottam Cement is promoted by Saurabh Group, a prominent business house of Nepal.
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