Ghorahi Cements' IPO For Project-affected Locals Undersubscribed by Massive 80 per cent; Concludes Allotment
Wed, Jun 7, 2023 10:00 AM on Latest,
Ghorahi Cement Industry Limited has completed the IPO allotment procedure for the project-affected locals of Dang district, on Tuesday.
The company today, notified that a total of 77,290 unit shares have been allotted to the locals.
Earlier, the company had issued 3,97,190 IPO unit shares for project-affected locals of Dang district from Baisakh 19- Jestha 02.
Later, as the units were undersubscribed until the early closing date, the company had notified that the issue has extended till 17th Jestha for the locals.
For the locals, the face-value of the share was Rs. 100 each with an added premium of Rs. 300 each, amounting to Rs. 400 per unit share of the company.
Earlier, 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. However, the issue for the Nepali migrant workers too had been undersubscribed as 20 per cent share units had received no applications.
There were a locking period of three years for the project-affected locals including a high-price. Consequently, the IPO issue has only entertained 19.45 per cent applications for locals while 80.55 per cent units remained unclaimed.
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.
