Last day to apply for the IPO of Shivam Cement Limited; issue already oversubscribed

Shivam Cement Limited is closing 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) from today (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 45,746 applicants who applied for 46,59,210 units till yesterday evening.

Project affected locals

Similarly, 781 application were received for 3,55,670 units from the locals of the project affected area.

Since the shares floated to the general public category is oversubscribed by 1.13 times; any unsubscribed shared of the project affected people will be allotted to the general public now. That is why the issue is getting closed today. This way the percentage of project people post IPO will be reduced from existing 2% in the total paid up capital of the company. 

The application can be placed from the financial institutions providing C-ASBA facility or through Meroshare. Applications can be placed for minimum 50 units and maximum 44 lakh units for public issue and minimum 50 units and maximum 5.79 lakh units for the project affected locals.

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.

Click Here for closing notice: