Nepal Warehousing Company IPO Allotment Concluded; 1,14,125 out of 11,91,988 Valid Applicants Get 10 Units Each

Wed, Dec 6, 2023 10:22 AM on IPO/FPO News, Latest,

The IPO allotment of Nepal Warehousing Company Limited is concluded today at the premises of the issue manager Himalayan Capital Limited, Kathmandu. 

Nepal Warehousing Company Limited issued 11,41,250 unit IPO shares at par value of Rs 100 to the general public from 10th to 13th Mangsir, 2080. 

Out of the total 13,75,000 units; 10% i.e. 1,37,500 units have already been issued 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 had received applications from 11,91,988 valid applicants who had applied for a total of 1,26,56,720 units. The issue was oversubscribed by more than 11.09 times. 

As per the allotment module, a total of 1,14,125 applicants were allotted 10 units each via lottery and the remaining 10,77,863 applicants were returned with empty hands. 

A total of 68,750 units were allotted to the mutual funds and 27,500 units were allotted to the employees of the company.

In total 3,661 applicants who applied for 48,730 units were disqualified.

Allotment Module:

The IPO result can be accessed by CDSC IPO ResultMeroShare, and Himalayan Capital Limited.   

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.