Nepal Stock News: Shivam Cement IPO Allotment Result - All Valid Applicants Allotted as per Demand Upto 5,220 Unit Shares!

Shivam Cements Limited (SCL) has successfully concluded its initial public offer (IPO) on Wednesday morning 10:30 AM onwards today, 6th March 2019 (22nd Falgun 2075) at its premises. The company had floated 2% shares of the its issue capital, that is, 8,80,000 unit shares at a face value of Rs 200 per unit share to the project affected locals and 10%, that is, 44,00,000 unit shares at a face value of Rs 300 per unit shares to the general public, initially for four working days, starting from Monday 18th February 2019 (6th Falgun 2075) to Thursday 21st February 2018 (9th Falgun 2075), and due to undersubscription then extended for additional four working days till 26th February 2019 (14th Falgun 2075) for full subscription just last week.

According to Siddhartha Capital Ltd., its issue manager, there were 51,898 applications from the general public for 5,191,160 unit shares, collecting a total of Rs 1.56 billion with 1.26 oversubscription, while there were 1,898 applications from the local public for 489,900 unit shares with only 89% subscription, leaving 98,334 unit shares that will also be allotted to the general public for its oversubscription. Of the total public applications received, 16 applications applying for 1,300 unit shares were rejected due to errors, whereas for local applications, only 1 application for 100 unit shares was rejected due to error and the remaining 785,305 valid applications were included in the allotment process.

Of the total 51,882 valid public applications, 5,189,560 unit shares amounting to Rs 1.5568 billion were allotted of which applicants applying for 50 to 5,220 were each allotted in full as demanded while those applying for 6,530 to 100,000 unit shares were each allotted 5,640 on pro rata basis, and a total of 16 lucky applicants out of 38 applying for 6,530 to 100,000 unit shares were each allotted 10 and 1 unit share more on 5,640 allotted via lottery, thus leaving none empty handed. Citizen Mutual Fund-1, Global IME Capital Ltd., Global IME Sammunat Yojana01 had applied for 100,000 unit shares each from the general public.

DOWNLOAD LINK

Earlier, the company had issued 10% of the issued capital, that is, 4,400,000 unit shares to the general public at Rs 300 per unit share including a premium of Rs 200 added on a face value of Rs 100 per unit share. Of the total issuance, 220,000 (5%) unit shares for its employees and another 220,000 (5%) unit shares for the existing mutual fund companies, however, due to undersubscription the remaining 4,340,000 unit shares along with additional 94,695 unit shares underscribed by project affected people also had been added to the general public, making a total of 4,434,695 unit shares for this issue.

As per the provisional results, the company achieved a net profit of NPR 937 million over operating income of NPR 7.11 billion during 9M FY 2018. During FY 2017, the company reported net profit of NPR 811 million over operating income of 7.36 billion.

NIBL Ace Capital Ltd., Global IME Capital Ltd. and CBIL Capital Ltd. have been appointed as the underwriters for this IPO issue.

After this IPO issue, the paid-up capital of the company will reach Rs 4.40 billion.