IPO Issue of Sarvottam Paints Industries Limited Closing Today; Oversubscribed 37.90 Times So Far

Sarvottam Paints Industries Limited is closing the issue of 7,05,500 units of IPO shares at a par value of Rs 100 from today, i.e., 2nd Ashadh, 2083. The issue was opened for the general public on 28th Jestha, 2083.

The company's issued capital is Rs. 34 Crores. Of this, 25%, i.e., 8,50,000 unit shares, will be issued to the public. Of this general public issue, 10% of 8,50,000, a total of 85,000 unit shares, were allotted to Nepalese citizens working abroad.

Of the general public issue, 2%, i.e., 17,000 units, have been set aside for the company's employees, and 5% of the total offered shares, i.e., 42,500 units, have been reserved for mutual funds. The remaining 7,05,500 units will be issued to the general public and will be closed from today.

Global IME Capital Limited has been appointed the issue manager for the public offering. Applications could be placed for a minimum of 10 units and a maximum of 5,000 units.

According to CDSC, 24,63,429 applicants have applied for 26,743,640 units. Thus, the issue has been oversubscribed 37.90 times.

CARE Ratings Nepal Limited (CRNL) has upgraded the issuer rating of Sarvottam Paints Industries Limited (SPIL) to ‘CARE-NP BB (Is)’ from ‘CARE-NP BB- (Is)’. This rating indicates that the issuer carries a moderate level of default risk in meeting its financial obligations on time within Nepal.

Sarvottam Paints Industries Limited (SPIL), originally incorporated as a private limited company on January 23, 2015, was later converted into a public limited company on July 14, 2022. The company is engaged in the production and sale of a wide range of products, including decorative interior and exterior emulsion paints, primers, enamel paints, water-based primers, distemper, waterproofing liquids, oil-based primers, gold paints, cement paints, thermoplastic road marking paints, and wall putty. Its manufacturing plant is located in Godawari-02, Attariya, Kailali, while its sales depot office is situated in Madhyapur Thimi-02, Bhaktapur, Nepal.