sarbottam cement ipo ;
>The Nepal Securities Board has approved the Initial Public Offering (IPO) of Best Cement.
After giving authorization to institutional investors to allot shares, the board has given permission to issue 36 lakh shares worth 29 lakh 20 thousand. The company has fixed the share issue price at Rs 360 per share. Earlier, the company had allotted shares to institutional investors at the rate of 501 per share.
sarbottam cement At the initial stage of the book building method, eligible institutional investors were allowed to purchase shares through competitive bidding. However, after this stage, the process of issuing regular shares will be followed as in case of IPO.
The company has prioritized local investors for issuing shares, followed by those working abroad and finally the general public. Although a person can apply for only 10 shares in other companies, in this case the application for less than 50 shares will not be accepted. Those who want to apply for 50 shares will have to deposit 18 thousand 450 rupees.
sarbottam cement limited ipo ;
The best cement has issued primary shares through book building process on Wednesday. This is the first time that a Nepali company has issued an Initial Public Offer (IPO) at a book building price.
The company issued a public notice and said that it has opened the IPO for institutional investors with a deadline of November 26. The company has set a cut-off price of Rs 401 per unit and a limit of Rs 50 per unit of Rs 601.
The company has received approval from the Nepal Securities Board (SEBON) to transfer 12.9033 percent of the issued capital of 4 billion 65 crores. Out of the proposed 6 million shares of primary shares, the company has issued 2.4 million shares of IPO at the book building price in the first phase.
Sarbottam Cement Limited Issuing IPO Shares to Industry
Book building is the process of trying to price a company's IPO. An underwriter, usually an investment bank, builds the book by inviting institutional investors such as merchant banks, mutual funds, listed companies, securities traders and other entities recognized by SEBON to submit bids for the number of shares and the price they desire. to pay for them.
By implementing the Book Building Regulations 2020, Sebon has allowed a mechanism for floating ordinary shares to interested companies for both institutional and general investors. According to Sebon, a company that has been operating at a profit for at least three years and has a net worth of 150 percent of the capital per share can issue an IPO at the book building price.
Additionally, the company must have received at least an average credit rating from authorized agencies. In order to issue an IPO through this process, the company concerned will have to take approval from its annual general meeting.
According to this rule, the public organization that wants to put the common shares in the IPO must first consult with the interested institutional investors and determine the base price of the shares. The price range can then be determined within 20 percent of the upper and lower limits of the base rate. Thereafter, interested institutional investors are asked to submit bids not exceeding 20 percent of the upper limit score.
Three years ago, Sebon's then chairman Bhishmaraj Dhungana and Nepal Stock Exchange's chief executive officer Chandrasingh Saud were accused of insider trading by persuading their close relatives to buy the promoter's shares in the cement manufacturing company.