एभरेष्ट कलरको आईपीओ आजदेखि खुला, ६ लाख ५५ हजार कित्ता सर्वसाधारणका लागिEverest Color opens IPO to general public, 655,700 shares on offer

Everest Color Limited, a paint manufacturer based in Tandi, Chitwan, opened its initial public offering to ordinary investors today, marking the company's formal entry into Nepal's capital market. A total of 655,700 shares — priced at Rs 100 each at face value — are available for subscription, with applications accepted for a minimum of 10 units and a maximum of 10,000 units per investor.

IPO at a glance

Shares for general public6 ,55,700 units

Face value Rs 100 per share

Minimum application10 units

Maximum application 10,000 units

Application deadline Jestha 27 (extended to Ashadh 5 if undersubscribed)

Issue manager Muktinath Capital

Credit rating CARE-NP BB (moderate risk)

Out of the company's total issued capital of Rs 300 million, shares earmarked for Nepali migrant workers (79,000 units), mutual funds (39,500 units) and employees (15,800 units) have already been allotted through earlier tranches. Today's offering covers the remaining public portion, which the Securities Board of Nepal had approved as part of the company's broader capital-raising plan amounting to 26.33 percent of total issued capital.

Operating revenue climbed nearly 50 percent in fiscal year 2081/82 to Rs 142 million, up from Rs 95 million the previous year — while net profit margin expanded from 3 percent to 15 percent over the same period.

The financial turnaround at Everest Color has been notable. Net cash generation jumped from Rs 6 million to Rs 18 million, and the debt-to-equity ratio has fallen sharply to just 0.02 times after promoters injected fresh capital to retire bank liabilities. Rating agency CARE Ratings Nepal, which assigned the company a "CARE-NP Double B" issuer rating, cited these improvements as principal strengths.

The rating, however, also flags meaningful risks that prospective investors should weigh carefully. The company's debtor collection period averages 188 days — an unusually long stretch that ties up working capital — and its overall operating cycle stands at 248 days. Combined with heavy dependence on imported raw materials and exposure to foreign exchange volatility, these factors constrain the company's financial flexibility. Stiff competition from established domestic and multinational paint brands adds another layer of market risk.

Investors may apply through ASBA-member banks and financial institutions at designated branches, or through the c-ASBA system via the MeroShare platform. Should subscriptions fall short of the target by Jestha 27, the issue period will be extended to Ashadh 5.