Sarbottam Cement Limited has called Qualified Institutional Investors (QIIs) to bid for 24,00,000 units of Initial Public Offering (IPO) shares through the Book Building Process.
This bidding process is exclusively designated for Qualified Institutional Investors (QIIs) and is scheduled to take place from the 6th Mangsir to the 10th Mangsir, 2080. The company has invited QIIs to participate in the bidding process during this specified timeframe. The company aims to issue these 24,00,000 unit shares to QIIs in the initial phase of its IPO.
The issued capital of the company is Rs. 4.65 Arba of which 12.9033% i.e. 60,00,000 unit shares will be issued to Qualified Institution Investors (QIIs) and the general public. Out of this total issue, 40% i.e. 24,00,000 shares will be issued to Qualified Institutional Investors from Mangsir 06.
As per the preliminary bid submitted by QII on 24th Asadh, 2079 the price range stood at Rs. 501 to Rs. 751.50 per share. Meanwhile, after the price revision, Qualified institutional investors can now apply for the IPO by offering a maximum of Rs. 601.50 and a minimum of Rs. 401. Once the IPO shares are issued, they will be sold at the price determined (the cut-off price), which may be above or below the base price which is Rs 501.25, based on investor demand. Later on, whatever the minimum cut-off rate of QIB would be, the general public will get shares at a 10% discounted price from the company. For example, if the QII cut-off rate stands out to be Rs 401, then the issue rate for the general public 36 lakh units would be 10% less i.e. Rs 360.9 per share.
Earlier, As per the preliminary bid submitted by QIB on 24th Asad 2079, the minimum price stood was Rs. 501 per share. Based on this rate, the base rate came out to be 25% higher i.e. Rs 626.25 per share. The company could issue shares up to 20% high i.e. Rs 751.5 per share to the QIB. Unfortunately, due to the allegations of the golden share to the SEBON chairperson and senior officials of other stakeholders company, the whole issue was kept on hold by SEBON.
Global IME Capital Limited is managing the overall issue of the cement company.
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BBB+ (pronounced ICRA NP issuer rating triple B plus) to Sarbottam Cement Limited. ICRA Nepal has also reaffirmed the long-term rating of [ICRANP] LBBB+ (pronounced ICRA NP L triple B plus) and the short-term rating of [ICRANP] A2 (pronounced ICRA NP A two) to Sarbottam’s bank loan limits.
Sarbottam Cement Limited was incorporated in October 2010 as a private limited company and converted into a public limited company in July 2019. The company is involved in the production and selling of clinker and cement. The company’s major shareholding is from the Saurabh Group, a prominent business house in Nepal. Its factory is located at Ramnagar VDC-05, Nawalparasi district. The company mainly manufactures OPC and PPC cement under the brand “Sarbottam”.