IPO for General Public: Shreenagar Agritech Industries Limited to Issue 25,10,493 Units IPO Shares from Ashwin 26

Shreenagar Agritech Industries Limited will open its Initial Public Offering (IPO) for the general public on the 26th Ashwin, 2082. The company is issuing 25,10,493 unit shares at a par value of Rs. 100 per unit. The early closing date for the IPO is the 29th Ashwin, 2082, but if the issue is not fully subscribed by then, the deadline will be extended to the 9th of Kartik, 2082.

The issued capital of the company is Rs. 1.63 Arba. Of this, 20%, i.e., 32,62,500 unit shares, will be issued to the public. Out of the total issue capital, 1%, which amounts to 1,63,125 unit shares worth Rs. 1.63 Crores, were allotted to the project-affected locals of Rupandehi and Palpa districts. The remaining 19% of the issued capital, i.e., 30,99,375 unit shares, are for the general public. Of this general public issue, 10%, a total of 3,09,938 unit shares, were already allotted to the Nepalese citizens working abroad.

Of the general public issue, 4%, i.e., 1,23,975 units, have been set aside for the employees of the company, and 5% of the total offered shares, i.e., 1,54,969 units, have been set aside for the mutual funds. The remaining 25,10,493 units are for the general public, which will be opened on 26th Ashwin.

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 10,000 units.

ICRA Nepal Limited has upgraded the issuer rating of Shreenagar Agritech Industries Limited from [ICRANP-IR] B- to [ICRANP-IR] B. Entities with this rating are considered to have a high risk of defaulting on financial obligations. The rating reflects the general creditworthiness of the issuer and is not specific to any particular debt instrument. The rating scale ranges from [ICRANP-IR] AA to [ICRANP-IR] C, with plus (+) and minus (-) signs indicating comparative positioning within a category. A B+ rating is one notch higher than B, while B- is one notch lower.

Shreenagar Agritech Industries Limited (SAI), established in 2004 and converted into a public company in 2023, produces poultry, cattle, and fish feed under the brands ‘Sunaulo’ and ‘Himdana.’ With an annual capacity of 135,780 metric tonnes at its Rupandehi plant, SAI has also expanded into poultry and meat processing. Major promoters include Satish Chandra Shrestha (34%), Chandra Pankaj Developers (12%), Shikhar Insurance (8%), Citizen Life Insurance (4%), and around 830 other investors holding 42%.

Offer Letter