Sarbottam Cement Limited is set to launch its Initial Public Offering (IPO) to the general public, utilizing the book-building method for the first time. The IPO price for common investors has been fixed at Rs 360.90 per share, with a minimum application requirement of 50 units. Aspiring investors are expected to allocate at least Rs 18,045 to participate in this offering.
This IPO is governed by the book-building guidelines, where the 'cut-off price' serves as a pivotal factor. During the primary share distribution to institutional investors, the 'cutoff price' for Sarbottam Cement was set at Rs 401. Following the guidelines, shares are made available to the general public at a reduced rate, specifically 10% lower than the 'cut-off' price. For Sarbottam Cement, this translates to Rs 360.90 per share for common investors.
It is crucial to note that failing to maintain the necessary balance of at least Rs 18,045 in the bank account will result in automatic cancellation of the application.
Sarbottam Cement's IPO entails the issuance of 60 lakh units of shares, amounting to 12.9033% of the total issued capital of Rs 4.65 arba. Out of this, 24 lakh units (40%) are earmarked for qualified institutional investors, while the remaining 36 lakh units (60%) will be made available to the general public including employees, foreign migrant workers, mutual fund schemes, and project affected local people.
This move by Sarbottam Cement not only marks a significant step in the company's financial journey but also presents an opportunity for common investors to partake in the growth of the cement industry. As the IPO unfolds, market enthusiasts are keenly watching the dynamics of this offering that promises a stake in Sarbottam Cement's future endeavors. However, by the first week of Poush the company shall issue IPO for the general public.
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