IPO for General Public: Palpa Cements Industries Limited Issue 45,00,000 Units IPO Shares from Today

Palpa Cements Industries Limited has officially opened its Initial Public Offering (IPO) for the general public starting today, 12th Falgun, 2082. The company is issuing 45,00,000 unit shares at a par value of Rs. 100 per unit. The early closing date for the IPO is 15th Falgun, 2082, but if the issue is not fully subscribed by then, the deadline will be extended to the 26th Falgun, 2082.

The issued capital of the company is Rs. 3.75 Arba. Of this, 20%, i.e., 75,00,000 unit shares, will be issued to the public. Out of the total issue capital, 5%, which amounts to 18,75,000 unit shares worth Rs. 18.75 Crores, were allotted to project-affected locals of West Nawalparasi (Former Nawalparasi District). The remaining 15% of the issued capital, i.e., 56,25,000 unit shares, are for the general public. Of this general public issue, 10% of 56,25,000, a total of 5,62,500 unit shares, were already allotted for the Nepalese citizens working abroad.

Of the general public issue, 5%, i.e., 2,81,250 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 2,81,250 units, have been reserved for mutual funds. The remaining 45,00,000 units will be issued for the general public and opened from today.

Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance. Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units.

ICRA Nepal has reaffirmed the long-term rating of [ICRANP] LBB (pronounced ICRA NP L double B) for the long-term loan limits and the short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) for the short-term loan limits of Palpa Cement Industries Limited (PCIL or the company). Additionally, the ratings have been removed from Watch with Negative Implications.

Palpa Cement Industries Limited (PCIL), established in 2009, is a greenfield cement manufacturing company that began producing clinker in April 2019 and cement in January 2020. Located in Sunuwal, Nawalparasi, with mines in Rahawas, Palpa, the plant has an annual production capacity of 0.59 million metric tonnes of clinker and 0.73 million metric tonnes of cement, utilizing vertical rolling mill (VRM) technology. A part of the RMC Group, a prominent business house in Nepal, PCIL operates from its registered office in Thapathali, Kathmandu.