Sarvottam Cement Limited has announced the initiation of its Initial Public Offering (IPO) and sale today, starting from Poush 25. The company aims to raise funds for the regions affected by industrial and mining operations, as well as for Nepali workers employed abroad.
The company has identified the local residents residing in the affected areas of Sunwal Municipality wards 3, 4, 5, 6, and 13 in Nawalparasi district and Rainadevi Chahara Rural Municipality wards 1 and 2, Ribdikot Rural Municipality wards 2, 3, 4, and 6, Tinau Rural Municipality wards 1, 2, and 3, Mathagadhi Rural Municipality wards 7 and 8, and Nisdi Rural Municipality ward 7, totaling 930,000 shares for issuance. Additionally, the company has received approval for the issuance of 267,000 ordinary shares for Nepali workers employed abroad, having obtained labor approval from the relevant authorities.
Prospective investors in the IPO are required to submit applications at a rate of NPR 360 per share, with a minimum application of 50 shares and a maximum of 10,000 shares. The IPO for residents in the affected areas will close on Magh 10, while for others, the deadline is Magh 25. Nepali workers abroad are encouraged to submit their applications by Magh 10.
Icra Nepal has provided Sarvottam Cement Limited with a Triple B rating in its share issuance, indicating the company’s medium-level financial capability to responsibly fulfill its financial obligations and operate safely.
The issuance and sales management of the company’s IPO are handled by Global IME Capital Limited, with NIBL Ace Capital and Prabhu Capital Limited serving as the issue and sales managers.
Residents in the affected industrial areas can apply at branches of Global IME Bank, Laxmi Sunrise Bank, Shine Rising Development Bank, Garima Bikas Bank, and Muktinath Bikas Bank in Nawalparasi district. Similarly, those in the mining affected areas can apply at branches of Global IME Bank, Nepal Investment Mega Bank, Laxmi Sunrise Bank, and Krishi Bikas Bank in Palpa district.
Nepali workers abroad, who have obtained approval from the Nepal Securities Board, can apply through the branches of member banks and financial institutions, along with their respective Clearing and Settlements systems.
Sarvottam Cement Limited, located in Jodeni, Nawalparasi district, has been producing cement and clinker since February 13, 2071. The industry has a daily production capacity of 3,000 tons of clinker and 3,000 tons of cement. The company utilizes technology from Denmark’s BMR for its operations.
According to the financial year 2079/80 audit report, the total cost, including the construction period interest, amounted to NPR 12.22 billion. The company’s normal investment recovery period is 3 years and 9 months, with a discounted investment recovery period of 4 years and 7 months.