Final Day to Apply for Palpa Cement Industries IPO

Today (Falgun 15) is the final day to apply for the Initial Public Offering (IPO) of Palpa Cement Industries Limited, which was opened for subscription on Falgun 12. After completing the allotment of shares to project-affected local residents and Nepalis working abroad, the company has now issued the remaining shares to the general public.

The company had received approval to issue 75 lakh units of ordinary shares worth Rs. 75 crore, representing 20 percent of its total issued capital of Rs. 3.75 billion. Out of the total shares, 18,75,000 units were allocated to local residents of the project-affected area, and 5,62,500 units were issued to Nepalis working abroad. Additionally, 2,81,250 units were reserved for mutual funds and the same number for company employees. The remaining 45 lakh units worth Rs. 45 crore, at a face value of Rs. 100 per share, have now been offered to the general public.

Investors can apply for a minimum of 10 shares and a maximum of 1,00,000 shares. Infomerics Credit Rating Nepal has assigned the company an ‘IRN Double B Plus’ issuer rating, indicating a moderate level of risk regarding its capacity to meet financial obligations.

The company reports a Net Present Value (NPV) of Rs. 12.99 billion and an Internal Rate of Return (IRR) of 13.785 percent. The simple payback period is 6 years and 8 months, while the discounted payback period is 9 years and 12 months. The company has been producing clinker since Baisakh 2076 and cement since Baisakh 2077, with a daily production capacity of 1,800 metric tons of clinker and 2,200 metric tons of cement. Nabil Investment Banking Limited is the issue and sales manager. Investors may apply through all ASBA-approved banks and financial institutions or via the “Mero Share” online system.