IPO of Shivam Cements closed with over-subscription for general public and under subscription from project affected locals

Shivam Cement Limited had closed its IPO issue (579,640 units at Rs 200 per unit to the project-affected locals of Makawanpur district and 4,120,000 units at Rs 300 per unit to the general public) on (Falgun 14, 2075).

The company has floated 2% shares of the issue capital i.e. 8.80 lakh unit shares to the project affected locals and 10% i.e. 44 lakh unit shares to the general public. Out of the total issuance, 220,000 units (5%) had been separated for the Employees of associated organizations and another 220,000 units (5%) for Mutual Funds. However, mutual fund have subscribed only for 60,000 units. So, the remaining shares have been added for general public category.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance. Whereas, NIBL Ace Capital Limited, Global IME Capital and CBIL Capital are the underwriters of this issue.

General public

As per the issue manager, the issue has collected applications from 51,896 applicants who applied for 51,91,160 units till yesterday evening. The total amount collected is Rs 1,557,348,000. The issue is oversubscribed by 1.26 times.

Project affected locals

Similarly, 990 application were received for 4,89,900 units from the locals of the project affected area. The issue was subscribed by only 84.5%.

Since the shares floated to the general public category is oversubscribed; any unsubscribed shared of the project affected people and employees of the company will be allotted to the general public now. This way the percentage of project people post IPO will be reduced from existing 2% in the total paid up capital of the company. 

ICRA Nepal had assigned Grade 3+ rating to the IPO of Shivam Cements Limited indicating Average Fundamentals.

After the IPO, the paid-up capital of the company will reach Rs 4.40 arba.