All Shares of SHIVM Become Tradable From Today, Only 10% Were Tradable Till Now

Sun, Mar 6, 2022 11:02 AM on Stock Market, Latest,

All 4,40,00,000 shares of Shivam Cements Limited (SHIVM) have become tradable from today.

Shivam Cements issued an Initial public offering (IPO) for project affected locals and the general public at a premium price.

The company issued 10% of the capital for the general public and 2% for locals. However, since the issue was floated at a premium price, it got undersubscribed and took multiple phases to be fully subscribed.

The company issued 10% of the issued capital i.e. 44 lakh unit shares to the general public at Rs 300 per unit (Rs 200 premium added on Rs 100 face value per share). Out of the total issuance, 2,20,000 units were allocated for employees of associated organizations and another 2,20,000 units for mutual funds. However, only 60,000 shares were allotted to mutual funds.

So, the remaining (44 lakh units – 60 thousand units allotted to different mutual fund schemes + 94695 units undersubscribed by project-affected people) 44,34,695 units were issued for the general public and employees at Rs 300 per unit.

Thus, 4.4 crore unit shares of SHIVM were listed in NEPSE, out of which only 44.94 lakh units of ordinary shares were tradable. The remaining 3.87 crore units promoter shares and 7.85 lakh units shares of project-affected locals were not tradable until now.

This is because the shares held by promoter shareholders and any bonus or right shares given to those shares were subject to a lock-in period of 3 years from the date of allotment of the Initial Public Offering (IPO).

The allotment of shares concluded on March 06, 2019, which means that the promoter and project affected local's shares will be tradable from today, i.e. March 06, 2022. This equates to 3,95,06,000 shares, which is 89.78% of the company's total shares.

SHIVM closed at Rs. 1,168 last week.