Shivam Cement to issue 52.80 lakh unit shares as IPO; Per unit price with premium set at Rs 300 for locals and Rs 400 for general public

Shivam Cement Limited has received approval from Securities Board of Nepal (SEBON) for issuing 52.80 lakh unit shares as Initial Public Offering (IPO).

The manufacturing company will be issuing 8.80 lakh unit shares for the locals of project affected area and 44 lakh unit for the general public. The shares will be issued for Rs 400 per unit (including premium of Rs 300) for the general public and for Rs 300 per unit (including premium of Rs 200) for the local people.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance.

After SEBON’s direction for the production based industries to issue minimum of 10% shares for the general public, Shivam Cement had taken the decision of issuing IPO for both the local people as well as general public on Poush 25, 2074.

Currently, the paid-up capital stands at Rs 387.2 crore and will climb by 12% after the IPO issuance, where 2% will go to locals and 10% to the general public.  Similarly, the debt stands somewhere near Rs 400 crore, so the debt-equity ratio stands somewhere near 50:50.

ICRA Nepal has assigned Grade 3 rating to the IPO issuance which signifies average fundamentals.

Shivam cements which was established in 2009 is a largest manufacturing Greenfield project in Nepal. Today the production capacity stands at 1800 tons of clinker and 3000 tons of cement. 

An indepth interview was conducted by Sharesansar with Mr. Satish Kumar More which entails further details of the company and the issuance.