Shivam Cement is floating an initial public offering (IPO) of 880,000 shares priced at Rs300 apiece – Rs 100 face value plus Rs 200 premium – for locals of Makwanpur district from July 29, in the first phase.
The company also plans to issue another 4,400,000 shares to the general public at Rs 400 per unit. ICRA Nepal has assigned a Grade 3 rating to the IPO of Shivam Cement, according to the Siddhartha Capital, the issue manager for the Shivam Cement IPO.
Shivam Cement is the first manufacturing company from the private sector to issue public shares after a decade, according to the Securities Board of Nepal (Sebon) that has revised its share registration and issuance regulations last year to attract real sector companies to go public. Sebon – the capital market regulator – has approved the IPO of Shivam Cement last month.
According to the new SEBON rule, companies are required to offer only 10 per cent of their shares to the general public. The budget for the fiscal year 2016-17 has stated that companies wishing to go public would get a 15 per cent income tax rebate. Likewise, the budget for the current fiscal year 2018-19 also stated that manufacturing companies with a paid-up capital of Rs1 billion or more will have to go public.
The domestic share market is highly dominated by banks and financial institutions (BFIs), with some 80 per cent of the total listed shares in the Nepal Stock Exchange (Nepse).
The entry of the manufacturing company is the BFIs-dominated share market will help the Nepse to expand.
Promoted by the Sharda Group, Shivam Cement owns 30 per cent of Hongshi-Shivam Cement, a Nepal-China joint venture company.
The company also plans to issue another 4,400,000 shares to the general public at Rs 400 per unit. ICRA Nepal has assigned a Grade 3 rating to the IPO of Shivam Cement, according to the Siddhartha Capital, the issue manager for the Shivam Cement IPO.
Shivam Cement is the first manufacturing company from the private sector to issue public shares after a decade, according to the Securities Board of Nepal (Sebon) that has revised its share registration and issuance regulations last year to attract real sector companies to go public. Sebon – the capital market regulator – has approved the IPO of Shivam Cement last month.
According to the new SEBON rule, companies are required to offer only 10 per cent of their shares to the general public. The budget for the fiscal year 2016-17 has stated that companies wishing to go public would get a 15 per cent income tax rebate. Likewise, the budget for the current fiscal year 2018-19 also stated that manufacturing companies with a paid-up capital of Rs1 billion or more will have to go public.
The domestic share market is highly dominated by banks and financial institutions (BFIs), with some 80 per cent of the total listed shares in the Nepal Stock Exchange (Nepse).
The entry of the manufacturing company is the BFIs-dominated share market will help the Nepse to expand.
Promoted by the Sharda Group, Shivam Cement owns 30 per cent of Hongshi-Shivam Cement, a Nepal-China joint venture company.
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