Securities Board Makes 4 Decisions About Ghorahi Cement's IPO; Nepal Police To Investigate Further
Wed, Jul 5, 2023 5:58 PM on Latest,
The Securities Board of Nepal (SEBON) has made four different decisions regarding the public issue of Ghorahi Cement Industry Limited. According to the board, an investigation committee was formed to study Ghorahi Cement Industry Limited, and based on the report of the investigation committee, the following decisions were taken:
1. Some investors have applied to buy abnormally large shares without having enough funds in their bank accounts, with the intention of misleading the general public. The said applicants have no relationship with the directors, employees, issuing company, or the issuing and sales manager. They have applied with the intention of misleading the general public. The board will recommend further investigation regarding fraud by Nepal Police.
2. A notice had been published to extend the time period for applications for the purchase of shares despite receiving excess application than the demand. Further investigation will be conducted in this matter.
3. ASBA member NIC Asia Bank Limited will conduct further investigation and take necessary action regarding the acceptance of applications without sufficient funds in the applicants' accounts.
4. In the event that the actions of the applicants (investors), ASBA member banks and financial institutions, and the issuing and sales manager differ from the actions of the issuing company, and the applicant investors do not have direct involvement with the issuing company, Rs. 3 Arba 61 crores held, and the shares issued to Nepalese who are employed abroad and the locals of industry affected areas have been distributed, Rs. 29 crores 46 lakhs 78 thousand two hundred and fifty rupees have been transferred to the company's account. Considering the fact that 2079/80 is about to end, the investigation work on the matters mentioned in points 1, 2, and 3 should be carried forward.
- The postponed issue will be opened as follows:
a) Applications registered in the C-ASBA system for the public issue of Ghorahi Cement Industry Limited will be allowed to add/decrease the number of applied-for shares or withdraw/cancel the application.
b) A three-day period from the date of publication of the notice by the Issuance and Sales Manager will be given to withdraw or reduce the application.
c) In sub-rule (2) of rule 10 of the Securities Registration and Issuance Regulations, 2073, it is stated that if all the securities issued are not sold within the period specified in sub-rule (1), the organizing organization may keep the application for securities open for a maximum of fifteen days from the date of opening of such application. If all the requested securities are not sold within the extended period of three days, given that the issue has been open for five days from 2080/02/32 to 2080/03/04, arrangements will be made to keep the issue open for an additional seven days after the additional three days for amending the application.
Ghorahi Cement's share issue and sales managers are Himalayan Capital Limited and Nabil Investment Banking Limited.
Earlier, the company had issued 69,11,670 unit shares of Rs 435 per unit (including a premium of Rs 335) as Initial Public Offering to the general public from 32nd Jestha, 2080. The early closing date of this issue was on 4th Ashad. In spite of receiving over-subscription, the company extended closing date to 14th Ashad, 2080.
As per the offer letter, 79,43,801 unit shares, or 20% of the issued capital; 77,290 units have been allotted to the project-affected locals, 606,350 units have been allotted to the Nepalese citizens working abroad, 328,961 have been set aside for mutual funds and 19,530 units have been set aside for the employees of the company. Including the remaining shares after all previous allotments and reservations, a total of 69,11,670 units were floated for the general public.
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