Nepal Warehousing Company Limited is closing the issue of 11,41,250 units IPO shares at a par value of Rs. 100 from today i.e. on 13th Mangsir. The issue opened on 10th Mangsir, 2080 for the general public.
Out of the total 13,75,000 units; 10% i.e. 1,37,500 units have already been allotted to Nepalese citizens working abroad, whereas 2% i.e. 27,500 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 68,750 units have been set aside for the mutual funds. The remaining 11,41,250 units are for the general public, the issue of which will close from today.
Himalayan Capital Limited is appointed as the issue manager. Applications can be placed for a minimum of 10 units and a maximum of 50,000 units.
According to CDSC, 10,55,638 applicants have applied for a total of 1,14,53,940 units worth Rs. 1.14 Arba. Thus, the issue has already been oversubscribed by 10.03 times so far.
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- (pronounced ICRA NP issuer rating double B minus) to Nepal Warehousing Company Limited. Issuers with this rating are considered to have a moderate risk of default regarding the timely servicing of financial obligations.
Nepal Warehousing Company was established under the Company Act, 2063 of Nepal to cater to the warehousing needs of the farmers, traders, millers, and businessmen who deal in the trade of grains for their commercial and industrial purposes. These actors more often face post-harvest losses, degraded product quality for further use, and most frequently face problems of keeping grains in a healthy environment for a long time. In order to keep the quality of grains stored intact for a long time, the Nepal Warehousing Company Ltd has brought the solution by installing high-quality silos of 55,000 MT capacity at three different places in province number 1, province number 2, and in Lumbini province.