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

The Securities Board of Nepal (SEBON) has announced a suspension on the ongoing Initial Public Offering (IPO) issuance of Ghorahi Cement Industries Limited.

In a recent press release, SEBON highlighted that they had previously requested an explanation from CARE Ratings Nepal Limited (CRNL) within a three-day ultimatum on 2080/02/03. The request was regarding the verification of whether the issuer rating assigned to Ghorahi Cement Industries for the IPO issuance complied with Rule 34(2) of the Credit Rating Regulations, 2068.

However, CRNL failed to submit the requested explanation within the given deadline. Additionally, despite the oversubscription of the public issue, Ghorahi Cement Industries extended the closing date for the submission of excess applications for the IPO.

In light of these issues, SEBON has imposed a ban on the ongoing public issue of Ghorahi Cement Industries to further investigate the matter.

Earlier today, in a conversation with Sharesansar, an official from the Securities Board of Nepal (SEBON) mentioned that they have requested the application details of Ghorahi Cement's ongoing IPO issue. The board will review the report, and further information will be promptly provided following the review. This statement follows the recent warning issued by CDS and Clearing Limited on Monday, cautioning against fraudulent applicants during the IPO process of companies.

READ MORE: CDS and Clearing Limited Warns Against Fraudulent Applications in Public Securities Issues

The decision to halt the IPO issuance of Ghorahi Cement Industries by SEBON aims to address the concerns raised and ensure a fair and transparent process for investors in the capital market.

See latest data from CDS and Clearing Limited on Ghorahi's Issue:

Ghorahi Cement Industry Limited had extended its 69,11,670 units IPO shares to the general public till 14th Ashad, 2080.