SEBON: Blocked Money Of Ghorahi's IPO Applicants To Be Released Only After Report of Investigation Committee

The application fee, which has been blocked during the Initial Public Offering (IPO) process of Ghorahi Cement Industry Limited, will be released once the investigation committee's report is available.

Tej Prasad Devkota, Deputy Executive Director and Information Officer of SEBON, confirmed during a phone conversation with Sharesansar correspondent that the investigation committee was formed just yesterday to examine the issue.

The committee's objective is to investigate any potential fraudulent activities that may have occurred during the IPO issuance. As long as the investigation is ongoing, the funds raised through the IPO will remain blocked, according to Devkota.

"The committee will conduct its research and subsequently submit a report. Based on the findings, further instructions will be provided regarding the matter."

Earlier, SEBON had announced a suspension on the ongoing Initial Public Offering (IPO) issuance of Ghorahi Cement Industries Limited.

READ MORE: SEBON Halts Ongoing IPO Issuance of Ghorahi Cement Industries; But Why?

The company had issued 69,11,670 unit shares of Rs 435 per unit (including a premium of Rs 335) as Initial Public Offering to the general public from 32nd Jestha, 2080. The early closing date of this issue was on 4th Ashad. In spite of receiving over-subscription, the company extended closing date to 14th Ashad, 2080.

As per the offer letter, 79,43,801 unit shares, or 20% of the issued capital, 77,290 units have been allotted to the project-affected locals, 606,350 units have been allotted to the Nepalese citizens working abroad, 328,961 have been set aside for mutual funds and 19,530 units have been set aside for the employees of the company. Including the remaining shares after all previous allotments and reservations, a total of 69,11,670 units were floated for the general public.