Ghorahi Cement Industry To Issue IPO In Premium; Company To Raise More Than Rs 3.44 Arba From The Public

The IPO proposals of Ghorahi Cement Industry Limited (GCI) is added to SEBON's pipeline.

The Cement company has submitted a proposal to issue 7,943,801 unit shares. Out of the entire number of shares, 3,97,190 unit shares are reserved for the project affected local people while the remaining 75,46,611 unit shares are reserved for the general public. The company will issue the IPO by adding a premium of Rs 300 to the face value of Rs 100 totalling to Rs. 400 for the project affected locals. Similarly, for general public, shares will be issued at Rs 435 after adding a premium of Rs 345 to the face value.

This IPO issue will generate Rs. 3,441,651,785 for the company. Himalayan Capital Limited as well as Nabil Investment Banking Limited has been appointed as the issue manager. The proposal was submitted on Shrawan 09, 2079 in the SEBON.

The turnover of the company in 2021 was Rs. 6.09 Arba. The company, which has a plant in Dang, was converted into a public company in March 2021. Care Ratings have confirmed that the industry's turnover has grown by 7.35 percent in 2021. The turnover of the company in 2020 and 2019 was Rs. 5.67 Arba and Rs. 8.87 Arba respectively.

CARE Ratings Nepal Limited (CRNL) has assigned rating of `CARE-NP BBB- (Is)’ to Ghorahi Cement Industry Limited (GCIL). Issuers with this rating are considered to offer moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.

Earlier, Shivam Cement Limited had issued the IPO in the premium to both the project affected people and to the general public. The company had issued in total 12% share i.e. 52.80 lakh units in the year 2019.