Heavy Industries and Media Giants Dominate SEBON's IPO Pipeline
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An analysis of the Securities Board of Nepal (SEBON) IPO pipeline reveals that heavy manufacturing industries and major media entities are leading the charge in upcoming public offerings. Looking closely at the "Others" and "Manufacturing & Processing" sectors, a few massive listings stand out, commanding a significant portion of the total pipeline volume.
A key distinction between the two sectors is the pricing strategy: while the majority of the top "Others" sector companies are sticking to the traditional base face value of Rs. 100, the largest manufacturing players such as Jagdamba Steels, Shaurya Cement, and Riddhisiddhi Cement are heavily opting for premium pricing models to leverage their massive industrial book values.
Top 5 Pipeline Companies in Others Sector by Number of Issues
|
Company Name |
IPO Price (Rs.) |
No. of Issues (Shares) |
|
Dish Media Network Ltd. (For General Public) |
100 |
19,705,970 |
|
Business Interest Group of Industries Limited (For General Public) |
100 |
7,420,000 |
|
Prabhu Helicopter Limited (For General Public) |
100 |
6,125,000 |
|
Hospital For Advanced Medicine and Surgery Ltd. (HAMS Hospital) (For General Public) |
100 |
2,400,000 |
|
Hulas Finserv Hire Purchase Limited (For General Public along with premium @358.85) |
358.85 |
2,075,000 |
Dish Media Network Ltd. leads the list by a significant margin, seeking to issue 19,705,970 shares at par value. It is followed by Business Interest Group of Industries Limited with 7,420,000 shares and Prabhu Helicopter Limited with 6,125,000 shares.
Rounding out the top five are HAMS Hospital with 2,400,000 shares and Hulas Finserv Hire Purchase Limited, which is issuing 2,075,000 shares and is the only company in the top five utilizing a premium pricing model, set at Rs. 358.85 per share. Together, these top five companies account for the vast majority shares currently in this section of the SEBON pipeline.
Top 5 Pipeline Companies in Manufacturing & Processing Sector by Number of Issues
|
Company Name |
IPO Price (Rs.) |
No. of Issues (Shares) |
|
Shubhashree Agni Cement Udhyog Limited (For local and General Public) |
100 |
20,210,000 |
|
Jagdamba Steels Limited (For Local and General Public along with premium @330) |
330 |
20,070,000 |
|
Mahashakti Cement limited (For local and General Public) |
100 |
17,850,857 |
|
Shaurya Cement Industries Ltd. (For Local and General Public along with premium @333) |
333 |
15,981,500 |
|
Riddhisiddhi Cement Ltd. (For Local and General Public along with premium @246) |
246 |
12,171,500 |
The top five pipeline entries in the Manufacturing and Processing sector are entirely dominated by heavy industries specifically cement and steel manufacturers. Shubhashree Agni Cement Udhyog Limited leads the sector with 20,210,000 shares, closely followed by Jagdamba Steels Limited with 20,070,000 shares.
Mahashakti Cement limited ranks third with 17,850,857 shares, while Shaurya Cement Industries Ltd. 15,981,500 shares and Riddhisiddhi Cement Ltd. 12,171,500 shares secure the fourth and fifth positions respectively. Notably, three out of these top five companies (Jagdamba, Shaurya, and Riddhisiddhi) are leveraging a premium pricing structure rather than issuing shares at the baseline face value of Rs. 100.
