Sopan Pharmaceuticals to Launch IPO from March 22 for Nepalis Working Abroad

Sopan Pharmaceuticals Limited is set to issue its Initial Public Offering (IPO) starting March 22 (Chaitra 9). The company has announced that the first phase of the share issuance will be targeted specifically at Nepali citizens working abroad who have obtained labor approval from the Government of Nepal.The company has received approval to issue 42.9 million shares worth NPR 429 million, which represents 25 percent of its issued capital of NPR 1.716 billion. Out of the total shares to be issued, 10 percent, or 429,000 shares worth NPR 42.9 million, have been allocated for Nepali workers currently employed overseas.In accordance with regulatory provisions, the company has also reserved a portion of the shares for institutional and internal stakeholders. Five percent of the total shares, or 214,500 shares, have been allocated to mutual funds, while four percent, or 171,600 shares, have been set aside for the company’s employees. After these allocations, the remaining 3.4749 million shares will be issued to the general public in a later phase.Investors applying for the IPO will be required to apply for a minimum of 10 shares and can apply for up to 11,000 shares. Nepalis working abroad will be able to submit their applications until March 25 (Chaitra 12). If the issue is not fully subscribed within that period, the deadline may be extended until April 5 (Chaitra 23).The issue and sales manager for the IPO is NMB Capital Limited. Eligible applicants can submit their applications through ASBA-approved banks and financial institutions, their designated branch offices, or via the C-ASBA system using the ‘Mero Share’ online platform developed by CDS and Clearing Limited.For the purpose of the IPO, CARE Ratings Nepal has assigned the company a ‘CARE-NP B’ issuer rating. This rating indicates that the company carries a relatively high level of risk in meeting its financial obligations, suggesting that investors should carefully evaluate the potential risks before investing.According to the company’s financial projections, the simple payback period for the investment is estimated at 8.11 years, while the discounted payback period is estimated at 11.35 years. The company has also reported a Net Present Value (NPV) of approximately NPR 15.97 billion, with an Internal Rate of Return (IRR) of 23.63 percent, indicating the projected profitability of the investment.