Category: IPO | FPO

  • United Mewa Khola Hydropower Enters IPO Agreement with Citizens Capital for “Mewa Khola Jalbidhyut Ayojana” Project”

    United Mewa Khola Hydropower Enters IPO Agreement with Citizens Capital for “Mewa Khola Jalbidhyut Ayojana” Project”


    In a ceremony held at Dillibazar, Kathmandu, United Mewa Khola Hydropower Limited officially entered into an Initial Public Offering (IPO) Issue Management Agreement with Citizens Capital Limited. The agreement, signed by Mr. Aashish Thapa, the Executive Chairman of United Mewa Khola Hydropower Limited, and Mr. Sabir Bade Shrestha, the CEO of Citizens Capital Limited, outlines the collaboration for managing the IPO.

    Under the terms of the agreement, Citizens Capital Limited, a subsidiary of Citizens Bank International Limited, will take charge of overseeing the Initial Public Offering for United Mewa Khola Hydropower Limited. The IPO aims to issue ordinary shares to both affected locals and the general public.

    United Mewa Khola Hydropower Limited is currently engaged in the development of its project titled “Mewa Khola Jalbidhyut Ayojana” situated in Taplejung District. This hydropower project is designed to generate 50 megawatts of power. The signing of the IPO Issue Management Agreement marks a significant step for United Mewa Khola Hydropower Limited as it progresses towards making its shares available to the public through the IPO managed by Citizens Capital Limited.

  • Sarbottam Cement Reports 55.61% Dip in Q4 Net Profit, Unveils IPO Plans Amid Financial Update

    Sarbottam Cement Reports 55.61% Dip in Q4 Net Profit, Unveils IPO Plans Amid Financial Update


    Sarbottam Cement Limited has recently unveiled its financial performance for the fourth quarter of the fiscal year 2079/2080, revealing a significant 55.61% decline in net profit. The company’s net profit contracted from Rs. 46.76 crores in the corresponding quarter of the prior year to Rs. 20.75 crores in Q4, 2079/2080.

    Concurrently, the core business revenue, represented by sales revenue, witnessed a notable downturn of 31.74%, decreasing to Rs. 5.38 Arba from Rs. 7.88 Arba year-on-year. The other income of the company also experienced a substantial decline, dropping to Rs. 1.08 crores compared to the previous year’s figure of Rs. 8 crores. However, expenses for the same period exhibited a comparatively modest decrease of 9.27%.

    The company’s investment portfolio is reported at Rs. 55.6 crores. Sarbottam Cement’s paid-up capital remains steady at Rs. 4.05 Arba, with retained earnings totaling Rs. 3.45 Arba.

    In terms of financial metrics, the annualized earnings per share (EPS) for the company stand at Rs. 5.13, reflecting the per-share profitability, while the net worth per share is reported at Rs. 185.19.

    Moreover, Sarbottam Cement is currently in the process of issuing IPO shares through a book-building approach. The IPO entails the issuance of 60 lakh units of shares, constituting 12.9033% of the total issued capital amounting to Rs. 4.65 Arba. Notably, 40% (24 lakh units) of the IPO shares have been issued to the Qualified Institutional Investors (QII) from 6th – 10th Mangsir, 2080, while the remaining 60% (36 lakh units) will be made available to the general public, including employees, foreign migrant workers, mutual fund schemes, and project-affected local individuals.

  • Sarbottam Cement Announces IPO for Industry-Affected Locals and Foreign Nepalese Immigrants, Following Successful QII Allotmen

    Sarbottam Cement Announces IPO for Industry-Affected Locals and Foreign Nepalese Immigrants, Following Successful QII Allotmen


    Sarbottam Cement Limited has issued an offer letter for an Initial Public Offering (IPO) targeting industry-affected locals of Nawalparasi District, mine excavation-affected locals of Palpa District, and Foreign Nepalese Immigrants. The IPO subscription period for the specified groups is set from 25th Poush to 10th Magh, 2080. Notably, if the issue remains undersubscribed for the industry-affected locals of Nawalparasi District and mine excavation-affected locals of Palpa District by the early closing date, it may be extended until Magh 25. However, there will be no extension for Foreign Nepalese Immigrants beyond the early closing date.

    Previously, Sarbottam Cement conducted the issuance of its primary shares through the book-building process for Qualified Institutional Investors (QII) from 6th to 10th Mangsir, 2080. The allotment for the 36,19,190 unit shares, against the initially offered 24 lakh units to eligible institutional investors, took place on the 11th Mangsir.

    The overall issuance plan involves Sarbottam Cement offering 12.9033% of its issued capital amounting to Rs. 4.65 Arba, equivalent to 60 lakh shares or 60 crores. Out of this, 40% (24 lakh shares) has already been issued and allotted to Qualified Institutional Investors, leaving the remaining 60% (36 lakh shares) for the general public.

    Among the general public shares, 9,30,000 units will be allocated to industry-affected locals of Nawalparasi District and mine excavation-affected locals of Palpa District. The remaining 26,70,000 units will be divided into two portions – 10% (2,67,000 units) for Nepalese citizens working abroad, and the remaining 24,03,000 units for the general public.

    Global IME Capital has been appointed as the issue manager, and applications can be submitted for a minimum of 50 units and a maximum of 10,000 units.

    The share price for common investors is set at Rs. 360.90 per share. The IPO is being conducted through the book-building method, where the ‘cut-off price’ during the primary shares allotment to Qualified Institutional Investors was Rs. 401. As per the guidelines, shares for the general public are offered at a 10% discount to the ‘cut-off’ price, resulting in Rs. 360.90 per share for common investors.

    ICRA Nepal has maintained its issuer rating of [ICRANP-IR] BBB+ and reaffirmed the long-term rating of [ICRANP] LBBB+ and the short-term rating of [ICRANP] A2 to Sarbottam Cement Limited.

  • Himalayan Reinsurance IPO Allotment Concluded: Oversubscribed 1.2 Times with Strong Investor Interest

    Himalayan Reinsurance IPO Allotment Concluded: Oversubscribed 1.2 Times with Strong Investor Interest


    The allocation of Initial Public Offering (IPO) shares for Himalayan Reinsurance Limited has been finalized at Taj Reception in Baluwatar, Kathmandu. The company had issued 2,49,00,000 units of IPO shares at a price of Rs. 206 per share (Rs. 100 face value + Rs. 106 premium) to the general public from Mangsir 27 to Poush 2, 2080.

    Out of the total 3,00,00,000 units offered, 10% (30,00,000 units) were issued from 4th to 18th Mangsir and allotted to Nepalese Citizens working abroad on 24th Mangsir. Additionally, 2% (6,00,000 units) were reserved for the company’s employees, and 5% (15,00,000 units) were set aside for mutual funds. The remaining 2,49,00,000 units were made available to the general public. NMB Capital Limited served as the issue manager for the IPO.

    The IPO garnered significant interest, with 15,64,564 valid applicants applying for a total of 2,99,97,720 units, resulting in oversubscription by more than 1.2 times. The allotment process included a lottery for applicants who applied up to 34,050 units, with 10 extra units allocated. Out of 96,538 lottery-eligible applicants, 29,021 were allotted the additional units.

    The IPO result and allotment details can be accessed through CDSC IPO Result, MeroShare, and NMB Capital Limited. ICRA Nepal has affirmed an issuer rating of [ICRANP-IR] A- for Himalayan Reinsurance Limited, indicating a satisfactory level of safety in meeting financial obligations.

    Himalayan Reinsurance Limited, established in 2021, is the second reinsurance company to issue an IPO in Nepal. It specializes in providing reinsurance support to both Life and Non-Life Insurance Companies within Nepal and internationally. The company’s prominent promoters include leading business conglomerates and financial institutions such as Golchha Group, Shanker Group, Infinity Holdings, Lucky Group, and others.

  • Sarbottam Cement Makes History with SEBON Approval for First Book-Building IPO in Nepal

    Sarbottam Cement Makes History with SEBON Approval for First Book-Building IPO in Nepal


    The Securities Exchange Board of Nepal (SEBON) has given its approval to the initial public offering (IPO) proposal of Sarbottam Cement Limited on Poush 3, 2080. Notably, this marks the first instance of a company issuing an IPO under the book-building system in Nepal. Sarbottam Cement Limited has been granted permission to release 3,600,000 unit shares to the general public at a bid price of NPR 360.9 each, constituting 7.74% of the company’s issued capital, which amounts to Rs 4.65 arba. The IPO is expected to generate a total of Rs. 1.29 Arba for the company.

    Prior to this approval, the cement company adhered to guidelines by conducting its primary share issuance through the book-building process for Qualified Institutional Investors (QII) from the 6th to the 10th of Mangsir, 2080. The allotment process took place on the 11th Mangsir, during which 41 eligible institutional investors applied for 36,19,190 unit shares against the initially offered 24 lakh units.

    In total, Sarbottam Cement plans to issue 12.9033% of its issued capital, amounting to Rs 4.65 Arba, equivalent to 60 lakh shares or 60 crore. Out of this, 40% (24 lakh shares) has already been issued and allotted to Qualified Institutional Investors (QIIs), with the remaining 60% (36 lakh shares) set to be issued to the general public later.

    The ‘cut-off price’ plays a crucial role in IPOs conducted under the book-building process. During the primary shares allotment to qualified institutional investors, the ‘cut-off price’ for Sarbottam Cement was established at Rs 401. Following regulatory guidelines, shares are offered to the general public at a discounted rate, specifically 10% lower than the ‘cut-off’ price. For Sarbottam Cement, this translates to Rs 360.90 per share for common investors.

    Prospective investors are required to apply for a minimum of 50 units during the book-building process, and they are expected to allocate at least Rs 18,045 to participate in this offering. Global IME Capital is overseeing the management of the IPO for Sarbottam Cement.

    Additionally, ICRA Nepal has reaffirmed Sarbottam Cement Limited’s issuer rating as [ICRANP-IR] BBB+ and has maintained the long-term rating at [ICRANP] LBBB+ along with a short-term rating of [ICRANP] A2 for Sarbottam’s bank loan limits.

  • Hams Hospital Makes Historic Move with Initial Public Offering, Paving the Way for Health Sector Entry into Nepal’s Capital Market

    Hams Hospital Makes Historic Move with Initial Public Offering, Paving the Way for Health Sector Entry into Nepal’s Capital Market


    Hospital for Advanced Medicine and Surgery Limited, also known as Hams Hospital, has taken a significant stride towards entering the capital market by submitting an application for an Initial Public Offering (IPO) to the Nepal Securities Board. Muktinath Capital Limited manages this endeavor, where the hospital intends to make 1,125,000 shares available for sale to the general public.

    The IPO application, filed on the present date, outlines a proposed total valuation of the hospital at Rs. 288 per share. This valuation comprises a face value of Rs. 100 and an additional premium of Rs. 188. The offering represents 15% of the issued capital, with each share valued at Rs. 288. This strategic move establishes Hams Hospital as the pioneering health sector company to venture into Nepal’s capital market.

    Established on November 2, 2054, and granted a license by the Ministry of Health of Bagmati Province, Hetauda, Hams Hospital functions with a bed capacity of 100. The institution is committed to delivering healthcare services of superior quality at affordable rates. This bold step into the capital market positions Hams Hospital at the forefront of health sector entities participating in Nepal’s financial landscape.

  • Butwal Power Company Calls 31st AGM: Endorses 5% Dividend and Proposes FPO

    Butwal Power Company Calls 31st AGM: Endorses 5% Dividend and Proposes FPO


    Butwal Power Company Limited (BPCL) has announced its 31st Annual General Meeting (AGM) scheduled for the 29th of Poush, 2080, corresponding to January 14, 2024. The meeting is set to take place at Karki Banquet, Babarmahal, Kathmandu, starting at 11 am on the specified day.

    Among the various agendas to be discussed at the AGM, one notable item is the endorsement of a 5 percent dividend for the fiscal year 2079/80. The decision to distribute a 5% cash dividend on the paid-up capital of Rs. 3.4 Arba was made during the board of directors’ meeting on Mangsir 29.

    Additionally, the AGM will address the endorsement of the auditor’s report, covering profit and loss statements, financial reports, and cash flow reports. The appointment of an auditor for the fiscal year 2080/81 is also on the agenda. Another crucial topic for discussion is the proposal from the Board of Directors to issue 1 Crore units of Follow-on Public Offering (FPO) shares at a par value of Rs. 100. The current paid-up capital of the company stands at Rs. 3.40 Arba, and after the FPO issuance, it will increase to Rs. 4.40 Arba.

    The book closure date has been specified from Poush 19 to Poush 29. Shareholders maintaining their shares until this date are entitled to the dividend payout and are also eligible to attend the AGM.

  • Budhanilkantha Heritage Hotel Calls 5th AGM with IPO Proposal and ICRA Nepal Rating

    Budhanilkantha Heritage Hotel Calls 5th AGM with IPO Proposal and ICRA Nepal Rating


    Budhanilkantha Heritage Hotel Limited has announced its 5th Annual General Meeting (AGM), scheduled for the 27th of Poush, 2080 (equivalent to January 11, 2024). The meeting will take place at the company’s registered office in Budhanilkantha, Kathmandu, Nepal, beginning at 4:00 p.m.

    Among the various agendas, one notable item is the proposal to issue an Initial Public Offering (IPO) representing 15% of the company’s issued capital. Additionally, the AGM will cover the endorsement of the auditor’s report, including profit and loss statements, financial reports, and cash flow reports. The appointment of an auditor for the fiscal year 2080/81 will be discussed, along with the approval of decisions made by the board of directors. There is also an agenda empowering the Board of Directors to make essential amendments, additions, reductions, or alterations in the Articles of Association and Regulations during the issuance of the IPO.

    ICRA Nepal has assigned a long-term rating of [ICRANP] LB+ to the NPR 900-million long-term loans (including proposed limits) of Budhanilkantha Heritage Private Limited (BHPL).

    Incorporated in November 2018, Budhanilkantha Heritage Private Limited serves as a special-purpose vehicle (SPV) for the ownership and operation of a proposed nine-storied 5-star hotel under construction in Budhanilkantha, Kathmandu. The plot size for the hotel is approximately 5,820 square meters. The promoter group comprises professionals, including chartered accountants, doctors, and private entrepreneurs. BHPL represents the first hotel project for the promoter group and is currently under construction, with targeted commercial operations expected to commence in December 2021.

  • “Siddhartha Premier Insurance Launches Auction of Promoter Shares: Open to General Public and Institutions”

    “Siddhartha Premier Insurance Launches Auction of Promoter Shares: Open to General Public and Institutions”


    The current promoters of Siddhartha Premier Insurance Limited (SPIL) have initiated the sale of 1,78,865 units of promoter shares through an auction. This auction is open to both interested promoter shareholders and the general public/institutions, spanning from the 4th Poush to the 13th Poush, 2080.

    In this auction, a total of 1,78,865 units of promoter shares from SPIL will be made available. Interested parties, including general public/institutions, who meet the qualification criteria, have the opportunity to participate in the bidding process. The minimum bid rate set for this auction is Rs. 220, and the minimum bid quantity for promoters’ shares is 5000 units.

    The auction management for this process is handled by NIC Asia Capital Limited.

    As of the current information, the Last Traded Price (LTP) for SPIL is Rs. 774.00.

  • Sarbottam Steel Announces 3rd AGM with IPO Proposal and ICRA Ratings Affirmation

    Sarbottam Steel Announces 3rd AGM with IPO Proposal and ICRA Ratings Affirmation


    Sarbottam Steel Limited has scheduled its third Annual General Meeting (AGM) for the 25th of Poush, 2080 (the equivalent of January 8, 2024). The meeting is set to take place at the Company Office Hall in Neupane Tower, Tinkune, Kathmandu, starting at 11:30 a.m.

    One of the key agendas for the AGM is the proposal to issue an Initial Public Offering (IPO) to the general public. Additionally, the meeting will address matters such as endorsing the auditor’s report, profit and loss statements, financial reports, and cash flow reports. The appointment of an auditor for the fiscal year 2080/81 will also be considered. Another agenda involves empowering the Board of Directors to make essential amendments, additions, reductions, or alterations in the Articles of Association and Regulations during the issuance of the IPO.

    ICRA Nepal has reaffirmed Sarbottam Steel Limited’s long-term rating of [ICRANP] LBB- and the short-term rating of [ICRANP] A4 for both fund-based and non-fund-based limits. The company was originally established as a private limited entity in 2017, promoted by the Saurabh Group, and was converted into a public limited company in July 2021. Sarbottam Steel Limited specializes in manufacturing billets and TMT (Thermo-Mechanically Treated) with installed capacities of approximately 264,000 MT and 235,000 MT, respectively. The production facility, located in Beluwa of Parsa district, commenced commercial operations in August 2022. Mr. Bishnu Prasad Neupane, the chairman and managing director, holds around 25% of the paid-up capital, while the remainder is owned by various individual and institutional shareholders.

  • Large Taxpayer Office Reports Record Profit Tax Collection of Rs. 12.5 Arba from Mergers, Acquisitions, and FPOs

    Large Taxpayer Office Reports Record Profit Tax Collection of Rs. 12.5 Arba from Mergers, Acquisitions, and FPOs


    The Large Taxpayer Office has reported the successful collection of Rs. 12.5 Arba in profit tax, derived from mergers, gains from acquisitions, and profits generated from Follow-On Public Offerings (FPOs). This significant amount was gathered on Friday and Saturday through detailed filings by numerous organizations. On Friday, 30 organizations contributed to this sum, filing taxes amounting to Rs. 11.3 Arba, with an additional 11 institutions filing taxes on Saturday, totaling Rs. 1.44 Arba. Mr. Janak Sharma, the head of the Large Taxpayer Office, commended both public and private entities for their proactive engagement in meeting their tax obligations.

    It was disclosed that among the 41 organizations paying taxes on profits from FPO, 14 also paid taxes on profits from both FPO and bargain purchases resulting from mergers and acquisitions. This tax collection falls under the current financial year, representing a substantial boost in revenue.

    This initiative was prompted by persistent recommendations from the Office of the Auditor General, raising concerns about tax evasion related to FPO premiums, gains from bargain purchases in mergers and acquisitions, and auction share sales. The Ministry of Finance and the Inland Revenue Department initially overlooked these concerns but took action following the 60th report of the Office, emphasizing the recovery of revenues from these sources.

    In response, Finance Minister Dr. Prakash Sharan Mahat introduced an arrangement to encourage timely payment of revenues. Companies paying taxes on FPO premiums, bargain purchase gains, and auction share sales by the end of Mangsir would be exempted from fines and interests. Despite legal scrutiny, the constitutional bench of the Supreme Court recently dismissed a petition filed by 16 Banking and Financial Institutions (BFIs), upholding the government’s position that the taxation did not constitute a levy on capital.

    The BFIs were given a deadline to deposit the specified amount by the end of Mangsir, and companies proactively met this deadline, contributing significantly to the substantial revenue collection observed over the weekend. The detailed breakdown of tax payments by various BFIs under different titles is provided, with a total of Rs. 7 Arba 97 Crores 87 lakhs remitted under FPO and Rs. 4 Arba 49 Crores 81 Lakhs for benefit of Bargain Purchases.

  • IPO Launch and Strong Investor Interest: Himalayan Reinsurance Limited’s Milestone in Nepal’s Financial Market

    IPO Launch and Strong Investor Interest: Himalayan Reinsurance Limited’s Milestone in Nepal’s Financial Market


    Himalayan Reinsurance Limited initiated the issuance of 2,49,00,000 units of IPO shares to the public starting from the 27th of Mangsir, 2080. The early closing date for this offering is set on the 1st of Poush, with the possibility of extension up to the 11th of Poush, 2080, if the subscription is not fully met.

    Out of the total 3,00,00,000 units, a portion has already been allocated – 10% (30,00,000 units) for Nepalese citizens working abroad, 2% (6,00,000 units) for company employees, and 5% (15,00,000 units) for mutual funds. The remaining 2,49,00,000 units are made available to the general public at a cost of Rs. 206 per share, inclusive of a Rs. 100 face value and a Rs. 106 premium.

    NMB Capital Limited holds the position of the issue manager, overseeing the application process. Interested parties can submit applications for a minimum of 10 units and a maximum of 3,00,000 units. As per the Central Depository and Clearing Company (CDSC), a total of 888,744 applicants have applied for 16,008,080 units, amounting to Rs. 3.29 Arba. Consequently, the subscription rate stands at 64.29% as of 10 AM.

    ICRA Nepal has reconfirmed an issuer rating of [ICRANP-IR] A- for Himalayan Reinsurance Limited. This rating, denoted as ICRA NP Issuer Rating A Minus, signifies a satisfactory level of safety concerning the company’s ability to meet financial obligations in a timely manner. Companies with such ratings are considered to have low credit risk.

    Established in 2021, Himalayan Reinsurance Limited is the second reinsurance company in Nepal to issue an IPO. As a leading private-sector reinsurance firm, it specializes in providing reinsurance support to both Life and Non-Life Insurance Companies within Nepal and internationally. The company received its operational license in 2021, marking a significant milestone in its operations.