Oversubscribed : 3.12 Times IPO Applications for Sarbottam Cement Limited .

                                    Oversubscribed : 3.12 Times IPO Applications for Sarbottam Cement Limited .

On the first day of the Initial Public Offering (IPO) of Sarbottam Cement, applications have surged to nearly three times the expected demand. As of Sunday, a staggering 8.6 million shares have been applied for purchase.

According to Siddhartha Capital Limited, until Sunday evening, 1,562,207 applicants have applied for a total of 8,660,640 shares, equivalent to NPR 3.12 billion. This overwhelming response indicates the high level of interest among investors.

Sarbottam Cement Limited initiated its IPO for the general public from Magh 13. The company offered a total of 2,776,776 shares, including 681,530 shares for local residents. However, only 681,530 shares have been subscribed for local residents, leaving the remaining 2,095,246 shares for the general public.

Investors participating in the IPO are required to submit applications at a rate of NPR 360.90 per share. The minimum application is set at 50 shares, while investors can apply for a maximum of 10,000 shares. The IPO subscription will close on February 16.

The credit rating assigned to the IPO by ICRA Nepal is ‘ICRANP IPO Grade 3’, indicating moderate fundamentals and adequate safety for investors. This rating underscores the company’s financial stability and its capability to meet its financial obligations.

Global IME Capital Limited is the issue manager for Sarbottam Cement’s IPO, while NIBL Ace Capital and Prabhu Capital are the co-issue managers. Investors can apply for shares online through the Mero Share portal operated by CDSC and Clearing Limited.

Located in Ward No. 11 of Sunwal Municipality, Nawalparasi district, Sarbottam Cement has been engaged in cement and clinker production since Falgun 1, 2071 B.S. The plant has a daily production capacity of 3,000 tons of clinker and 3,000 tons of cement, utilizing technology from Denmark.

The overwhelming response to Sarbottam Cement’s IPO reflects investor confidence in the company’s growth prospects and the cement industry’s potential in Nepal’s economy. With the IPO set to close soon, anticipation is high for its impact on the country’s capital market.

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