Palpa Cement Industries Limited to Launch IPO for Public from Falgun 12

Palpa Cement Industries Limited has announced the launch of its IPO from Falgun 12. After distributing shares to the local residents of the industry-affected areas and Nepali citizens working abroad, the company is now set to release the IPO for general public investors.

The company has received approval to issue 7.5 million shares, equivalent to 20% of its issued capital of NPR 3.75 billion. Of this, 1.875 million shares have been allocated to local residents, 562,500 shares to Nepali workers abroad, 281,250 shares to collective investment funds, and another 281,250 shares to the company’s employees. Now, the remaining 4.5 million shares will be available for general public investors.

A minimum of 10 shares can be applied for, and up to 100,000 shares can be applied for per investor. The IPO closing date will be between Falgun 15 and Falgun 26. In the rating given for the IPO, Infomerics Credit Rating Nepal has assigned the company an "IRN Double B Plus" issuer rating, indicating a medium level of risk in its ability to meet obligations.

The company's net present value stands at NPR 12.998 billion, with an internal rate of return of 13.785%. The company has been producing clinker since Baisakh 2076 and cement since Baisakh 2077. The daily clinker production capacity is 1,800 metric tons, and the cement production capacity is 2,200 metric tons.