Palpa Cements Industries Limited Concludes IPO Allotment for Project-Affected Locals of West Nawalparasi

The IPO allotment for Project-Affected Locals of West Nawalparasi (Former Nawalparasi District) by Palpa Cements Industries Limited was concluded today, 28th Magh, 2082.

The issued capital of the company is Rs. 3.75 Arba. Of this, 20%, i.e., 75,00,000 unit shares, will be issued to the public. Out of the total issue capital, 5%, which amounts to 18,75,000 unit shares worth Rs. 18.75 Crores, was allocated to project-affected locals of West Nawalparasi (Former Nawalparasi District). The remaining 15% of the issued capital, i.e., 56,25,000 unit shares, will be offered to the general public at a later date. Of this general public issue, 10% of 56,25,000, a total of 5,62,500 unit shares, were allotted for the Nepalese citizens working abroad.

The issue received a total of 26,084 valid applications for 59,27,580 units. Meanwhile, 163 applications for 42,410 units were disqualified.

According to the allotment module, 7,591 applicants who applied for 10–80 kitta received a total of 3,37,120 units, while 18,493 applicants applying for 90-20,000 kitta each were allotted 80 units each, a total of 14,79,440 units, and an additional 5,844 applicants in the same category received 10 units each.

Allotment Module:

The IPO result accessed by CDSC IPO Result, MeroShare, and Nabil Investment Banking Limited.

Nabil Investment Banking Limited has been appointed as the issue manager. For the project-affected locals and Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units, while the maximum quantity is 50,000 units.

ICRA Nepal has reaffirmed 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 of Palpa Cement Industries Limited (PCIL or the company). 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, utilizing 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.