Sarbottam Cement Limited is initiating the issuance of its 2,776,076 unit IPO shares on the 13th of Falgun, 2080. The deadline for early subscription ends on the 16th of Falgun, with the option to extend the offering until the 27th of Falgun, 2080 if the subscription target is not met by the initial deadline.
Previously, 267,000 units were issued and allocated to Nepalese citizens employed overseas. Additionally, the company distributed 930,000 unit shares to individuals affected by industry in Nawalparasi District or mine excavation in Palpa District, of which only 248,470 units were allocated to eligible applicants. Consequently, the remaining 487,910 units of unsubscribed shares from project-affected locals are combined with 681,530 units, resulting in a total of 3,084,530 units available for the general public.
Of the entire 3,084,530 units available, 154,227 units are designated for mutual funds, while an equal number of units have been reserved for company employees. The remaining 2,776,076 units are allocated for the general public.
The issue management responsibility has been assigned to Global IME Capital. Interested parties can apply for a minimum of 50 units and a maximum of 10,000 units per application. The share price of the company is Rs. 360.90 per share for common investors. This means that one needs to allocate a minimum of Rs. 18,045 to apply for this IPO.
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Typically, the 'cut-off price' plays a crucial role in IPOs conducted through the book-building method. In the case of Sarbottam Cement, the 'cutoff price' for primary share allocation to qualified institutional investors was established at Rs 401. As per regulations, shares are offered to the general public at a discounted rate, specifically 10% below the 'cut-off' price. For Sarbottam Cement, this amounts to Rs 360.90 per share for ordinary investors.
About Sarbottam Cement Limited
Sarbottam Cement Limited, established in October 2012, initially functioned as a private limited company. However, in July 2019, it underwent a transformation into a public company to enable the issuance of shares to the general public.
The company specializes in the manufacturing and distribution of clinker and cement, focusing on OPC and PC cement, which are marketed under the brand name 'Sarbattom.' With an annual production capacity of approximately 1 million metric tons for both clinker and grinding, Sarbottam Cement plays a significant role in the cement industry.
Saurabh Group, a prominent business entity in Nepal, spearheads the promotion of Sarbottam Cement.
Sarbottam Cement Limited, renowned for its dedication to excellence and innovation, has made a lasting impact on Nepal's construction industry. The choice to become a publicly traded company through an IPO perfectly aligns with the company's vision for growth and continued market leadership.