Sarbottam Cement Calls SGM; Proposed IPO Via Book Building Halted for This Fiscal Year

Sarbottam Cement Limited has called its SGM on 10th Ashar, 2078. The meeting will be held in the 5th-floor hall of Neupane Tower in Tinkune, starting at 11 am that day.

Among other agendas, the SGM will endorse the agenda to issue 19.118% bonus shares worth Rs. 65 crores. 1.006% cash dividend has also been proposed for tax purposes for the same. Note that the company has a paid-up capital of Rs. 3.4 Arba.

However, note that the IPO of the company that was set to be issued via the book building has been halted for this fiscal year. According to the clause of SEBON, the capital market regulator, companies should at least have one operational fiscal year after being converted to a public limited company. This is why the IPO process can't continue for this fiscal year, says Paras Mani Dhakal, CEO of issue manager Global IME Capital.

When Sharesansar called the company CEO Bharat Babu Dahal, he confirmed the issue manager's statement. Nonetheless, he stated that the company has been carrying out the necessary audit and the IPO process will resume at full speed immediately at the start of the upcoming fiscal year.

Sarbottam Cement had already concluded the issue manager signing ceremony for the IPO Book Building process. While 40% of the shares will be sold to institutional investors, 60% will be issued to the general public. The company has proposed to issue an IPO worth 60 lakh shares. The company is certain that the final price will not be lesser than Rs. 750 per share. However, institutional investors (book builders) have yet to bid for the IPO. After institutional investors submit bids with a quoted price for 40% of the shares (24 lakh units), the remaining 46.66% (28 lakh units) will be issued to the general public and 13.33% (8 lakh units) to the project affected people at 10% lesser than the quoted price.

AGM notice