Ghorahi Cement Industry Limited has issued an IPO for the general public today (June 32). The company has launched the IPO for the general public after the IPO issue for the project-affected local and foreign Nepalis.
The company has 20 percent of its issued capital of 3 billion 97 million 19 million 600 rupees, i.e. 5 percent of 97 lakh 43 thousand 801 shares worth 794 million 43 lakh 80 thousand 100 rupees. 3 lakh 97 thousand 190 shares have been issued to the general public at a rate of Rs 400 per share.
Similarly, 7 lakh 54 thousand 661 shares will be issued for Nepali citizens who are employed abroad after obtaining labor approval from the relevant agencies of the Government of Nepal and at a rate of Rs.435 and 5 percent i.e. 3 lakh 77 thousand 331 shares were allotted to employees.
The company distributed 77 thousand 290 shares to the residents of the industrially affected areas, 6 lakh 6 thousand 350 shares to the Nepalis working abroad after receiving work permit from the relevant agencies of the Government of Nepal, 3 lakh 28 thousand 961 shares to the collective investment fund and 19 thousand 530 shares to the employees of the company. 69 lakh 11 thousand 670 shares including the remaining 8 lakh 74 thousand 382 shares have been issued to the general public.
How to apply for IPO?
The IPO issued by the company can be applied for till Asar 4th. If there are not enough applications as per the demand by that period, the application can be submitted till Asar 14th.
Investors interested in the company's IPO can apply for a minimum of 10 shares at a rate of 100 rupees per share and for more than that, a maximum of 10 lakh shares can be divided by 10 points.
In the company's IPO, applications can be made from all the CASBA member banks and financial institutions and their designated branch offices that have received approval from the Nepal Securities Board. Similarly, application can also be made through Meroshare mobile app operated by CDSC.
Himalayan Capital and Nabil Investment Banking Limited are the share issue and sales managers of the company. Citizen investment fund is also among the guarantors.
Moderate rating
According to the rating given for the IPO issuance, Care Rating Nepal Nepal Limited has provided CareNP Triple B Minus Issuer Rating.
This indicates that the company has a medium base of ability to bear its liabilities.
Care Rating Nepal provided the company with a rating grade related to credit rating on July 22, 2022. The period of that rating will be maintained for one year i.e. till July 13, 2023.
What kind of company?
Ghorahi Cement Industry Limited was registered as a private limited company in the office of the registrar of companies on 21st Shrawan, 2064. Since Falgun 23, 2077, it has been transformed into a public limited company and has been conducting business.
The registered office of the company is Kathmandu Metropolitan City. 28, Triveni Triveni Complex, 8th Floor, Putlisadak, Kathmandu and Head Office is at Trade Tower, 6th Floor, Thapathali, Kathmandu.
The company's industrial site is Dang's Ghorahi sub-metropolitan ward no. 4 is in Ghorahi. Besides, other branch offices are located in Krishnanagar, Adarshnagar, Birgunj, Sunwal, Nawalparasi and Baijnath, Banke in Kapilvastu.
The company was established with the main objective of producing Killinger. At present, the company has contracted with various companies for cement production, collects limestone, manufactures Sagarmatha brand Klinger, OPC, PPC and PSC cement and distributes it.
The net present value of the company is 9 billion 56 crore 33 lakh 18 thousand 469 rupees 79 paise. The payback period for the ordinary side of the company is 4 years and 8 months, while the payback period for discount is 8 years and 5 months.
Purpose of issuing IPO
According to the provision in the articles of association and regulations, the company has issued 20 percent of the issued capital of Rs.
Currently, the paid up capital of the company is 3 billion 17 crore 75 lakh 20 thousand 500 rupees. After issuing 79 lakh 43 thousand 801 shares to the general public, shares had to be issued to increase the paid-up capital of the company to 3 billion 97 crore 19 lakh 600 rupees.
The company said that the money collected from the IPO issue will be used to repay the loans taken from various banks. The company said that 3 billion 41 crore 79 lakh 89 thousand rupees taken from the bank will be used to repay the loan.
The company has said that it will pay the equivalent loan to 13 banks.
Accumulated profit will be about 9 billion in two years
By the financial year 2081/82, the accumulated profit of the company is projected to reach 8 billion 75 crore 81 lakh 77 thousand rupees.
By the end of the current financial year i.e. 2079/80, the company will earn an accumulated profit of Rs. Even by the end of the last financial year, the company had earned an accumulated profit of Rs.
In the current financial year, the company's earnings per share are expected to reach 11 rupees 65 paisa, net worth per share 279 rupees 59 paisa.
It is estimated that by the financial year 2081/82, the company's income per share will reach 24 rupees 58 paisa and the net worth per share will reach 320 rupees 50 paisa.
How is the capital transfer?
At present, the authorized capital of the company is 6 billion 80 million rupees and the issued capital is 3 billion 97 million 19 lakh 600 rupees. Similarly, the paid up capital of the company is 3 billion 17 crore 75 lakh 20 thousand 500 rupees.
After the company issues and distributes 7943 thousand 801 shares to the general public (locals affected by the project, Nepalese working abroad, including employees and collective investment fund), the company's paid-up capital will reach 3 billion 970 million 19 million 600 rupees.
After the IPO issue, the share ownership of the company will be 80 percent of the founders and 20 percent of the general public.
Composition of the Board of Directors
The board of directors of the company consists of 7 directors consisting of 5 members from the founding shareholders, 1 member from the general shareholders and 1 independent director.
Currently, there are 5 members representing the founding shareholders in the committee. The company said that after issuing shares to the public and distributing them, the directors will be elected in accordance with the memorandum of association after being elected at the next general meeting
The chairman of the board of directors of the company is Purushottam Lal Sanghai. Similarly, the other directors of the company are Govind Lal Sanghai, Aditya Sanghai, Harsh Bardhan Sanghai and Trilok Chandra Agarwal.
Future plans and strategies
With the goal of playing a significant role in the infrastructure development of Nepal, the company said that it will continue to contribute to the journey of national development by diversifying and diversifying its products.
Due to the fact that the immediate capacity of the established industries could not address the high demand created for construction materials after the earthquake, the high capacity industries established after the created environment have started to grow. A decade ago, the Nepalese economy, which imported a large amount of clinker and cement, is currently self-sufficient in these materials.
The company has taken a strategy to expand its production capacity based on the created demand, indicating that the current cement and clinker production capacity in the country will be insufficient in the near future due to the country's infrastructure construction works that may be at a high rate.
The company has also made strategies saying that if the Nepali cement industries can expand their market only in Uttar Pradesh of India, the current capacity will be insufficient. The company has planned to research and develop mines related to the industry, take permission for more mining areas and make long-term arrangements for the management of limestone.
To expand the capacity of the industry and to operate branch offices and factories in other suitable places, to establish as a leading company in the development of Nepal's cement industry, to increase the plant and production capacity of organized organizations by following up-to-date technologies, to expand the market of clinker and cement produced by organized organizations in Nepal. It is planned to export to India and other countries.
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