Palpa Cement IPO Issuance Begins from Poush 25

Palpa Cement Industries Limited is set to issue its Initial Public Offering (IPO) starting from Poush 25, targeting project-affected local residents and Nepalis working abroad. The company has received approval to issue 7.5 million shares, equivalent to 20 percent of its paid-up capital of NPR 3.75 billion, at a face value of NPR 100 per share.

Out of the approved shares, 5 percent (1.875 million shares) have been reserved for local residents of the project-affected areas, including western Nawalparasi and Palpa district where the limestone mine is located. Additionally, 10 percent of the shares allocated for the general public—amounting to 562,500 units—have been earmarked for Nepalis employed abroad with valid labor approval.

Applicants can apply for a minimum of 10 shares and a maximum of 100,000 shares. The issue for local residents will close as early as Magh 9 and no later than Magh 25, while the IPO for foreign-employed Nepalis will close between Poush 30 and Magh 9. Infomerics Credit Rating Nepal has assigned the company an IRN BB+ issuer rating, indicating a moderate level of credit risk.

The company’s Net Present Value (NPV) stands at NPR 12.99 billion with an Internal Rate of Return (IRR) of 13.785 percent. Currently, Palpa Cement operates with a daily production capacity of 1,800 metric tons of clinker and 2,200 metric tons of cement. Nabil Investment Banking Limited has been appointed as the issue and sales manager for the IPO.