IPO Issue of Shreenagar Agritech Industries Limited Closes Today; Oversubscribed 5.88 Times
Author
NEPSE TRADING
Shreenagar Agritech Industries Limited is closing the issue of 25,10,493 units of ordinary shares (IPO) today, Ashwin 29, 2082. The IPO had opened for the general public on Ashwin 26, 2082.
The company’s issued capital stands at Rs. 1.63 Arba, of which 20% (32,62,500 units) has been offered to the public. Out of this, 1% (1,63,125 units) was reserved for project-affected locals of Rupandehi and Palpa districts, while the remaining 19% (30,99,375 units) was allocated to the general public.
From this general public portion, 10% (3,09,938 units) was set aside for Nepali citizens working abroad, 4% (1,23,975 units) for the company’s employees, and 5% (1,54,969 units) for mutual funds. The remaining 25,10,493 units are open for general investors and will close today.
Nabil Investment Banking Limited has been appointed as the issue manager. Investors were able to apply for a minimum of 10 units and a maximum of 10,000 units.
According to CDSC, a total of 13,14,153 applicants have applied for 1,47,81,700 units, indicating that the IPO has been oversubscribed by 5.88 times so far.
Meanwhile, ICRA Nepal Limited has upgraded the issuer rating of Shreenagar Agritech Industries Limited from [ICRANP-IR] B- to [ICRANP-IR] B. The rating suggests a high risk of defaulting on financial obligations and reflects the company’s general creditworthiness, not tied to any specific debt instrument.
Shreenagar Agritech Industries Limited (SAI) was established in 2004 and converted into a public company in 2023. The company manufactures poultry, cattle, and fish feed under the brands ‘Sunaulo’ and ‘Himdana’, with an annual production capacity of 135,780 metric tonnes at its Rupandehi plant. It has also diversified into poultry and meat processing.
The company’s major promoters include Satish Chandra Shrestha (34%), Chandra Pankaj Developers (12%), Shikhar Insurance (8%), Citizen Life Insurance (4%), and around 830 other individual investors holding the remaining 42%.
