Palpa Cements Industries Limited Closing IPO Today

Palpa Cements Industries Limited (PCIL) is closing its initial public offering (IPO) for the general public at 5 pm today. The issue was opened on February 24, offering 45,00,000 units at a face value of Rs. 100 per unit. The early closing date for the IPO is February 27.

According to the CDS and Clearing Limited (CDSC), as of February 26 (5:48 pm), the IPO has attracted an overwhelming investor interest with 20,05,205 applications, seeking 226,82,790 units. The IPO has been oversubscribed by 5.04 times.

Of the issued capital worth Rs. 3.75 arba, 20%--75,00,000 units—has been issued to the public. Out of the total issued capital, 5%, which amounts to 18,75,000 units worth Rs. 18.75 crore, were allotted to project-affected locals of West Nawalparasi district (Former Nawalparasi). The remaining 15%--56,25,000 units—was set aside for the general public.

From the portion allocated to the general public, 10%--5,62,500 units--were already allotted for the Nepalese citizens working abroad.

Similarly, 5%, amounting to 2,81,250 units, was set aside for the company's employees, and 5%--2,81,250 units--for mutual funds.

Nabil Investment Banking Limited has been appointed the issue manager for the IPO. Applications could be placed for a minimum of 10 units and a maximum of 1,00,000 units.

ICRA Nepal has assigned the company the long-term rating of [ICRANP] LBB (pronounced ICRA NP L double B) for the long-term loan limits and the short-term rating of [ICRANP] A4 (pronounced ICRA NP A four) for the short-term loan limits. Additionally, the ratings have been removed from "Watch with Negative Implications".

Palpa Cement Industries Limited (PCIL), established in 2009, is a greenfield cement manufacturing company that began producing clinker in April 2019 and cement in January 2020. Located in Sunuwal, Nawalparasi, with mines in Rahawas, Palpa, the plant has an annual production capacity of 0.59 million metric tonnes of clinker and 0.73 million metric tonnes of cement, utilising vertical rolling mill (VRM) technology. A part of the RMC Group, a prominent business house in Nepal, PCIL operates from its registered office in Thapathali, Kathmandu.