Shivam Cement to issue IPO at premium to locals of Makawanpur district and general public from today

Shivam Cement Limited is issuing its 5,79,640 units IPO shares at Rs 200 per unit to the project-affected locals of Makawanpur district and 41,20,000 units IPO shares at Rs 300 per unit to the general public from today (6th Falgun, 2075).

The company is issuing 2% shares i.e. 8.80 lakh unit shares to the project affected locals and 10% i.e. 44 lakh unit shares to the general public.

Project affected locals

In first phase, Shivam Cement had issued 8.80 lakh shares IPO for locals at Rs 300 per share. However, applications worth Rs 6 crore (2,00,240 units) only was collected from around 995 applicants till the last date.

So, this time the company has revised the price and set it at Rs 200. The already allotted applicants will be provided additional 1,00,120 unit shares as they had paid Rs 300.

The remaining 5,79,640 units shares is now open for application by the project affected locals at Rs 200.

General public

Similarly, the company is also issuing 44 lakh unit shares to the general public at Rs 300 per unit. Out of the total issuance, 2,20,000 units had been separated for the Employees of associated organizations and another 2,20,000 units for Mutual Funds.

So the remaining (44 lakh units – 2.2 lakh units – 60 thousand units) 41.20 lakh units has been issued for the general public at Rs 300 per unit.

Other information

The application can be placed from the financial institutions providing C-ASBA facility or through Meroshare. Applications can be placed for minimum 50 units and maximum 44 lakh units for public issue and minimum 50 units and maximum 5.79 lakh units for the project affected locals.

ICRA Nepal had assigned Grade 3+ rating to the IPO of Shivam Cements Limited indicating Average Fundamentals.

Siddhartha Capital has been appointed as the issue manager for the IPO issuance. Whereas, NIBL Ace Capital Limited, Global IME Capital and CBIL Capital are the underwriters of this issue. 

After the IPO, the paid-up capital of the company will reach Rs 4.40 arba.