Ghorahi Cement Industry Allots 6,06,350 units IPO Shares to Foreign Nepalese Migrants; Almost 20% Units Under-subscribed
Sun, May 28, 2023 1:46 PM on Latest,
Ghorahi Cement Industry has completed the allotment of 6,06,350 units IPO shares to Foreign Nepalese Migrants after the issuance was under-subscribed.
Ghorahi Cements had issued 7,54,661 units of IPO shares intended for Nepali migrant workers abroad amounting to 1.90% of the company's paid-up capital. The face value of each share was Rs. 100 and an additional premium charge of Rs. 335 was added and premium issuance was priced at Rs. 435 for each unit share.
The IPO was open for subscription from 19th Baisakh to 2nd Jestha, 2080. The allotment process for Nepalese nationals working abroad concluded on last Friday.
Earlier, the company had issued 7,54,661 units of IPO for Nepali migrant workers and 3,97,190 IPO unit shares for project-affected locals of Dang district from Baisakh 19- Jestha 02. It had notified that the if the issue is not subscribed by the early closing date, the issue can be extended till 17th Jestha for the locals. However, the issue will not be extended from the early closing date for Nepalese citizens working abroad.
For the Nepalese citizens working abroad, the minimum application was 10 units while the maximum quantity was 754,661 units. Meanwhile, for the project-affected locals, the minimum application quantity is 10 units while the maximum quantity is 100,000 units. .
Given that, the current public issue for Nepalese migrant workers was under-subscribed by 19.65%, the IPO subscription for project-affected Dang District too will potentially be under-subscribed even after the extended closing date as well. The company has already extended its closing date for subscription until Jestha 17 as it has been under-subscribed by the locals until the early closing date of Jestha 02. There is a three year locking period for project-affected locals for the premium IPO issuance.
The shares are issued for Rs 400 per unit (including a premium of Rs 300) for the locals.
Ever since the government brought in the provision to reserve 10% of public issue for Nepalese migrant workers back in early of 2023, Ghorahi was 22nd public issue. However, this is the first IPO issuance which has been under-subscribed. All 21 other companies that had decided to take their company public entertained full subscription of their public issue.
The issued capital of the cement manufacturing company is Rs. 3.97 Arba.
The promoter-public share ratio will 80: 20 after this IPO. This IPO issue will generate Rs. 3.44 Arba for the company. Out of this Rs 2.645 Arba will be a premium amount and the rest would add to the paid-up capital.
