IPO for General Public: Sarvottam Paints Industries Limited To Issue 7,05,500 Units IPO Shares from Today

Sarvottam Paints Industries Limited has officially opened its Initial Public Offering (IPO) to the general public from today, i.e., 28th Jestha, 2083, issuing 7,05,500 shares at a face value of Rs. 100 per unit. The IPO was initially scheduled to close on 2nd Ashadh, 2083, with a provision to extend the deadline to 11th Ashadh, 2083, if undersubscribed.

The company's issued capital is Rs. 34 Crores. Of this, 25%, i.e., 8,50,000 unit shares, will be issued to the public. Of this general public issue, 10% of 8,50,000, a total of 85,000 unit shares, were allotted to Nepalese citizens working abroad.

Of the general public issue, 2%, i.e., 17,000 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 42,500 units, have been reserved for mutual funds. The remaining 7,05,500 units will be issued to the general public and will be available from today.

Global IME Capital Limited has been appointed the issue manager for the public offering. Applications could be placed for a minimum of 10 units and a maximum of 5,000 units.

CARE Ratings Nepal Limited (CRNL) has upgraded the issuer rating of Sarvottam Paints Industries Limited (SPIL) to ‘CARE-NP BB (Is)’ from ‘CARE-NP BB- (Is)’. This rating indicates that the issuer carries a moderate level of default risk in meeting its financial obligations on time within Nepal.

Sarvottam Paints Industries Limited (SPIL), originally incorporated as a private limited company on January 23, 2015, was later converted into a public limited company on July 14, 2022. The company is engaged in the production and sale of a wide range of products, including decorative interior and exterior emulsion paints, primers, enamel paints, water-based primers, distemper, waterproofing liquids, oil-based primers, gold paints, cement paints, thermoplastic road marking paints, and wall putty. Its manufacturing plant is located in Godawari-02, Attariya, Kailali, while its sales depot office is situated in Madhyapur Thimi-02, Bhaktapur, Nepal.