Agreement between NEPSE and five companies to issue IPO through book building method

Five companies have entered into an important agreement with the Nepal Stock Exchange (NEPSE) to speed up the process of issuing shares to the general public by adopting the book building method. Staying within the ambit of book building guidelines, these companies have formally joined hands with NEPSE for smooth conduct of sealed bids of shares allotted to qualified institutional investors. This process is expected to ensure transparency in share pricing and fairness as per market demand.

According to the guidelines, any company that wants to issue shares through the book building method is required to enter into an agreement with NEPSE to conduct all related operations through an automated electronic system. Only after this initial stage is completed, the other formalities required for issuing shares through the book building process can proceed. In this way, among the companies that have concluded agreements with NEPSE are Norvik International Hospital, Jagdamba Spinning Mills, Time Pharmaceuticals, Lakshmi Steel and Purvanchal Lube Oil. These companies have allocated a substantial number of shares to qualified institutional investors as per their respective capabilities and requirements.

According to details, Norvik International Hospital has allocated 8 lakh 16 thousand 480 shares for institutional investors. Similarly, Jagdamba Spinning Mills has allocated 18 lakh shares, Time Pharmaceuticals 434 thousand 600 shares, Lakshmi Steel 18 lakh shares and Purvanchal Lube Oil 6 lakh shares.