Allotment of Shivam Cement IPO concludes; 51,882 and 1,897 applicants from general public and project affected people category gets 44.34 lakh and 7.85 lakh units respectively

Siddhartha Capital Limited has concluded the IPO allotment procedure of Shivam Cement Limited at its premises at 10:30 AM today.

The manufacturing company had issued 5,79,640 units IPO shares at Rs 200 per unit to the project-affected locals of Makawanpur district and 41,20,000 units IPO shares at Rs 300 per unit to the general public from 6th to 14th Falgun, 2075.

Project Affected People

A total of 1,898 applicants had applied for 7,85,405 units (including both 1^st and 2^nd phase of IPO) out of which 1,897 were deemed as valid applicants while 1 applicant who had applied for 100 units was deemed as invalid. The IPO was subscribed by 0.89 times.

In the issue of second phase of 5,79,640 units, 16.33% or 94,695 units remained undersubscribed, which then allotted to the general public category.

Earlier, in the first phase of IPO issue, from 13^th Shrawan to 11^th Bhadra, 2075; Shivam Cement had issued 8.80 lakh IPO shares for the locals of Makwanpur district at Rs 300 per share. However, applications worth Rs 6 crore (2,00,240 units) only was collected from around 995 applicants till the last date.

Then, due to under subscription the company had revised the price and set it at Rs 200 per unit. The already allotted applicants were provided additional 1,00,120 unit shares as they had paid Rs 300 per share initially. And the remaining 5,79,640 units’ IPO shares was made open for application by the project affected locals at Rs 200 from Fagun 6, 2075 onwards.

As per the allotment module, applicants applying from 15 units or Rs 3,000 to 1,15,000 units or Rs 2.30 crore amount were allotted fully as per their demand.

General Public

A total of 51,882 valid applicants had applied for 51,89,560 valid units or Rs 155.68 crore. In total there was 16 invalid applicants who had applied for 1,300 units. The IPO was oversubscribed by 1.17 times.

As per the allotment module, applicants applying from 50 units or Rs 15,000 to 5,220 units or Rs 15.66 lakh amount were allotted fully as per their demand. Whereas, applicants applying from 6,530 units to 1,00,000 units were allotted with 5,640 units each on pro rata basis. A total of 16 lucky applicants out of 38 applicants who applied share from 6,530 units to 1,00,000 units category were allotted 10 and 1 units more on 5,640 allotted shares.

Citizen Mutual Fund-1, Global IME Capital Limited, Global IME Sammunat Yojana-1 have applied for 1 lakh units each from general public category.

Earlier, the company had 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 had been separated for the Employees of associated organizations and another 2,20,000 units for the different Mutual Funds scheme.

However, only 60,000 shares have been allotted by the 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 lakh units was issued for the general public at Rs 300 per unit from 6^th to 14^th Fagun, 2075.

ICRA Nepal had assigned Grade 3+ rating to the IPO of Shivam Cements Limited Indicating Average Fundamentals.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance. Whereas, NIBL Ace Capital Limited, Global IME Capital and CBIL Capital were the underwriters of this issue. 

After the IPO, the paid-up capital of the company will reach Rs 4.40 arba.

For IPO result click here: