Sopan Pharmaceuticals to Launch IPO from Chaitra 9, Applications Open for Nepalis Working Abroad

Sopan Pharmaceuticals Limited is set to issue its Initial Public Offering (IPO) starting from Chaitra 9. The company had received approval to issue 42,90,000 shares worth Rs. 42.90 crore, which represents 25 percent of its issued capital of Rs. 1.71 billion. Out of the total shares, 10 percent (4,29,000 shares) will be allocated for Nepali citizens working abroad. Additionally, 5 percent of the shares have been reserved for mutual funds and 4 percent for the company’s employees, while the remaining 34,74,900 shares will be offered to the general public. Investors can apply for a minimum of 10 shares and a maximum of 11,000 shares. Nepalis working abroad can apply for the IPO until Chaitra 12, and if the issue is not fully subscribed within that period, the deadline will be extended until Chaitra 23. The issue and sales manager for the IPO is NMB Capital Limited. Applicants can apply through ASBA member banks and financial institutions approved by the Securities Board of Nepal or via the online platform “Mero Share” using the C-ASBA system. For the IPO rating, CARE Ratings Nepal has assigned the company a CARENP B Issuer Rating, indicating a high risk in the company’s ability to meet its financial obligations. The company’s simple payback period is 8.11 years and the discounted payback period is 11.35 years. The net present value of the company stands at Rs. 15.97 billion, with an internal rate of return of 23.63 percent.