Shreenagar Agritech Extends IPO Application Period for Local Residents

Shreenagar Agritech Industries Limited has extended the application period for its IPO, which is open for local residents of the industry-affected areas.

Although the company had initially closed the IPO on Bhadra 25, due to the adverse circumstances prevailing in the country on that day, applicants faced difficulties in submitting their applications. Considering the requests of local residents from the industry-affected areas, the company has extended the application period to Bhadra 30 and 31.

The issued capital of the company is Rs. 1.63 Arba. Of this, 20%, i.e., 32,62,500 unit shares, will be issued to the public. Out of the total issue capital, 1%, which amounts to 1,63,125 unit shares worth Rs. 1.63 Crores, will be allocated to project-affected locals of Rupandehi and Palpa districts. The remaining 19% of the issued capital, i.e., 30,99,375 unit shares, will be offered to the general public at a later date.

Of this general public issue, 10%, a total of 3,09,938 unit shares, were allocated for Nepalese citizens working abroad.

For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 10,000 units.

Nabil Investment Banking Limited has been appointed the issue manager for the public offering.

ICRA Nepal Limited has upgraded the issuer rating of Shreenagar Agritech Industries Limited from [ICRANP-IR] B- to [ICRANP-IR] B. Entities with this rating are considered to have a high risk of defaulting on financial obligations. The rating reflects the general creditworthiness of the issuer and is not specific to any particular debt instrument. The rating scale ranges from [ICRANP-IR] AA to [ICRANP-IR] C, with plus (+) and minus (-) signs indicating comparative positioning within a category. A B+ rating is one notch higher than B, while B- is one notch lower.

Shreenagar Agritech Industries Limited (SAI), established in 2004 and converted into a public company in 2023, produces poultry, cattle, and fish feed under the brands ‘Sunaulo’ and ‘Himdana.’ With an annual capacity of 135,780 metric tonnes at its Rupandehi plant, SAI has also expanded into poultry and meat processing. Major promoters include Satish Chandra Shrestha (34%), Chandra Pankaj Developers (12%), Shikhar Insurance (8%), Citizen Life Insurance (4%), and around 830 other investors holding 42%.