Tag: Sarbottam

  • Sarbottam Cement Successfully Allots IPO Shares to Overseas Nepali Workers; ICRA Nepal Reaffirms Ratings

    Sarbottam Cement Successfully Allots IPO Shares to Overseas Nepali Workers; ICRA Nepal Reaffirms Ratings


    Sarbottam Cement Limited has successfully allocated IPO shares to Nepali citizens employed abroad, concluding the allotment process on the morning of 17th Magh, 2080, at the premises of the issue manager, Global IME Capital, located in Kathmandu.

    The cement company had floated 267,000 units of IPO shares through the book-building process, offering them at a price of Rs. 360.90 exclusively for Nepali citizens working overseas. The subscription period for this Initial Public Offering extended from the 25th of Poush to the 10th of Magh, 2080. During this timeframe, interested applicants had the opportunity to apply for IPO shares, with a minimum application size of 50 units and a maximum of 10,000 units.

    The IPO garnered significant attention, evidenced by the receipt of 33,824 applications for the available 21,39,220 unit shares. Following the allocation process, it was observed that 14 applications, originally applying for 720 units, were disqualified. However, the majority of 33,810 applications were approved.

    Among the approved applications, 5,340 applicants out of the total 33,810 were successfully allotted 50 units each through a lottery system as part of the IPO allocation process.

    In a related development, ICRA Nepal has reaffirmed Sarbottam Cement Limited’s issuer rating as [ICRANP-IR] BBB+, emphasizing its stability. Additionally, ICRA Nepal has maintained the long-term rating at [ICRANP] LBBB+ and the short-term rating at [ICRANP] A2 for Sarbottam’s bank loan limits. This reaffirmation by ICRA Nepal underscores the company’s creditworthiness and financial standing in the market.

  • 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.

  • 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.

  • 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.

  • SEBON Approves Inclusion of Sarbottam Cement’s IPO in Pipeline, Sets Stage for Rs. 1.29 Arba Offering

    SEBON Approves Inclusion of Sarbottam Cement’s IPO in Pipeline, Sets Stage for Rs. 1.29 Arba Offering


    Sarbottam Cement Ltd.’s Initial Public Offering (IPO) has been included in the Securities Board of Nepal’s (SEBON) IPO pipeline for approval. The company intends to issue 3,600,000 unit shares to both local and general investors, with the IPO expected to generate a total of Rs. 1.29 Arba. Priced at Rs. 360.90 per share for both local and general investors, Sarbottam Cement Ltd. plans to conduct the IPO through the book-building method. Global IME Capital Ltd. has been appointed as the issue manager, and the application was submitted to SEBON on Mangsir 18, 2080. ICRA Nepal has reaffirmed Sarbottam Cement Limited’s issuer rating at [ICRANP-IR] BBB+, along with the long-term rating of [ICRANP] LBBB+ and the short-term rating of [ICRANP] A2 for the company’s bank loan limits.

    Additionally, the IPO proposal of Bikash Hydropower Company Ltd. has also been added to SEBON’s pipeline. The company has put forth a proposal to issue a total of 4,454,596 shares to both local and general investors, raising Rs. 44.54 crores. The application for this proposal was submitted on Mangsir 19, 2080, and Prabhu Capital Limited will serve as the issue manager for the public offering. ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB to Bikash Hydropower Company Limited (BHCL), indicating a moderate risk of default regarding the timely servicing of financial obligations. It’s important to note that this rating reflects a general assessment of the company’s creditworthiness and is not specific to any particular debt instrument.

  • Sarbottam Cement Launches Book-Building IPO, Inviting General Public Participation

    Sarbottam Cement Launches Book-Building IPO, Inviting General Public Participation


    “Sarbottam Cement Limited Initiates Book-Building IPO for General Public Participation”
    Sarbottam Cement Limited is gearing up to launch its Initial Public Offering (IPO) to the general public, employing the book-building method for the first time. The IPO price for common investors is fixed at Rs 360.90 per share, requiring a minimum application of 50 units, with investors expected to allocate at least Rs 18,045 to participate.

    Governed by book-building guidelines, the ‘cut-off price’ during primary share distribution to institutional investors was set at Rs 401 for Sarbottam Cement. Following these guidelines, shares are made available to the general public at a 10% reduced rate, specifically Rs 360.90 per share for common investors.

    Investors must maintain a minimum balance of at least Rs 18,045 in their bank accounts; otherwise, the application will be automatically canceled. Sarbottam Cement’s IPO involves the issuance of 60 lakh units of shares, constituting 12.9033% of the total issued capital of Rs 4.65 arba. Out of this, 40% (24 lakh units) is allocated for qualified institutional investors, and the remaining 60% (36 lakh units) is available to the general public, including employees, foreign migrant workers, mutual fund schemes, and project-affected local people.

    This move signifies a significant step in Sarbottam Cement’s financial journey, providing common investors with an opportunity to participate in the growth of the cement industry. As the IPO unfolds, market enthusiasts closely monitor the dynamics of this offering, offering a stake in Sarbottam Cement’s future endeavors. The company plans to issue IPOs for the general public by the first week of Poush.

  • Sarbottam Cement Initiates IPO Bidding for Qualified Institutional Investors on NEPSE

    Sarbottam Cement Initiates IPO Bidding for Qualified Institutional Investors on NEPSE


    The initial public offering (IPO) of Sarbottam Cement has initiated the bidding process for Qualified Institutional Investors (QII) at the Nepal Stock Exchange (NEPSE). The bidding unfolded in the presence of NEPSE’s CEO Krishna Bahadur Karki and Sarbottam Cement’s Chairman Bishnu Prasad Neupane. During this phase, the company made its IPO available to eligible institutional investors through the book-building process from Mangsir 6 to Mangsir 10.

    A total of 41 eligible institutional investors participated in this opportunity, applying for 36,19,190 shares against the initial offering of 24,00,000 units. Notably, there are currently 135 Qualified Institutional Investors licensed by the Securities Board of Nepal (SEBON). Key bids at the highest price came from Kumari Capital and two mutual funds under its operation, with bids of Rs. 406 per share, the highest in the bidding process.

    The book-building guidelines allowed a maximum of 20% shares to be bid by a single qualified investor of the total issue size. Several QII, including Sky Touch Investment and Consultant Pvt. Ltd, Alka Investment Pvt. Ltd, Nepal Insurance Company Limited, and City Express Investment Fund Pvt. Ltd, bid for the maximum limit of 4.8 lakh units each.

    Most bids were placed at the cut-off price of Rs. 401, and successful QII applicants will receive a proportionate share based on their applied amount and the available shares at the cut-off price. The allotted shares for successful QII will be subject to a six-month lock-in period from the date of allotment to the general public.

    The cut-off price is set at Rs. 401, and the shares for the general public will be available at Rs. 360.9, reflecting a 10% discount on the cut-off rate. Qualified institutional investors were allowed to apply within a specified price range of Rs. 401 to Rs. 601.50 per share.

    The company’s issued capital stands at Rs. 4.65 Arba, of which 12.9033% (60,00,000 units) will be issued to the public (QIIs and the general public). Out of this, 40% (24,00,000 shares) were allocated to Qualified Institutional Investors.

    An arrangement is in place to determine a cut-off price for fully sold securities to qualified institutional investors, with applicants at or above the cut-off price receiving their share allotments based on demand. Shares will be issued to general investors at a 10 percent discount from the cut-off price.

    The IPO of Sarbottam Cement initially applied through the book-building method on 28th Ashadh 2079, gaining approval 15 months later, marking a pioneering IPO through this method.

  • Sarbottam Cement Launches IPO for Qualified Institutional Investors with Revised Pricing Strategy

    Sarbottam Cement Launches IPO for Qualified Institutional Investors with Revised Pricing Strategy


    Sarbottam Cement Limited has initiated its Initial Public Offering (IPO) through the book-building process exclusively for Qualified Institutional Investors (QIIs), starting on the 6th of Mangsir. In this initial phase, the company aims to issue 24,00,000 unit shares to QIIs, with the IPO closing on the 10th of Mangsir, 2080. The company has specified this timeframe for QIIs to participate in the bidding process.

    The company’s total issued capital is Rs. 4.65 Arba, of which 12.9033% (60,00,000 unit shares) will be offered to the public, comprising Qualified Institutional Investors (QIIs) and the general public. Out of this, 40% (24,00,000 shares) will be allocated to Qualified Institutional Investors from the start of the IPO. The preliminary bid submitted by QIIs on 24th Asad suggested a price range of Rs. 501 to Rs. 751.50 per share. However, after a price revision, QIIs can now apply for the IPO with a maximum bid of Rs. 601.50 and a minimum of Rs. 401.

    Upon the issuance of IPO shares, they will be traded at the determined cut-off price, which may vary from the base price of Rs. 501.25 based on investor demand. Following this, the general public will receive shares at a 10% discounted price from the company, calculated based on the minimum cut-off rate of QIIs. For instance, if the QII cut-off rate is Rs. 401, the issue rate for the general public’s 36 lakh units would be 10% less, i.e., Rs. 360.9 per share.

    Global IME Capital Limited is overseeing the comprehensive issuance process for the cement company. ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BBB+ to Sarbottam Cement Limited, along with a long-term rating of [ICRANP] LBBB+ and a short-term rating of [ICRANP] A2 for Sarbottam’s bank loan limits.

    Established in October 2010 as a private limited company and converted into a public limited company in July 2019, Sarbottam Cement Limited is engaged in clinker and cement production and sales. The majority of its shareholding is held by the Saurabh Group, a prominent business entity in Nepal. The company’s manufacturing facility is located in Ramnagar VDC-05, Nawalparasi district, specializing in the production of OPC and PPC cement under the brand “Sarbottam.”