Opening Price Range of Sarbottam Cement Limited

 Sarbottam Cement was founded in the year 2010, however, it came into operation in February 2014. Its head office is at Neupane Tower, Tinkune, Kathmandu with the factory situated approximately 240 km away from Kathmandu at Sunwal, Nawalparasi. The factory has been established with an authorized capital of Rs 4,000 million. It is one of the largest cement factories in Nepal that produces clinker. The factory is spread over 30 bighas of land and the mine is spread over an area of 20 square kilometres for extracting limestone. At present, Sarbottam Cement employs 200+ people all across Nepal.

Issue Details:  Sarbottam Cement is to issue 12.9033% of its capital, which amounts to Rs 4.65 Arba (4.65 billion rupees), totalling 60 lakh shares or 60 crore rupees. Of these, 40% (24 lakh shares) are already allotted to Qualified Institutional Investors (QIIs), and the remaining 60% (36 lakh shares) are for the public. Out of the 36 lakh shares, 9,30,000 shares will go to locals affected by industry in Nawalparasi District or mining in Palpa District. The rest, 26,70,000 shares, will be divided further: 10% (2,67,000 shares) for Nepalese citizens working abroad and the remaining 24,03,000 shares for the general public to apply for. The share price of the company is Rs. 360.90 per share for public investors.

Opening range: The opening range of the company depends upon the audited book value of the company. As per the FY 2079/80, the book value of Sarbottam Cement Ltd is Rs. 185.36. Hence, the opening range of  Sarbottam Cement Ltd is Rs. 185.36 to Rs. 556.08.

Ratings: ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BBB+ (pronounced ICRA NP issuer rating triple B plus) to Sarbottam Cement Limited. ICRA Nepal has also reaffirmed the long-term rating of [ICRANP] LBBB+ (pronounced ICRA NP L triple B plus) and the short-term rating of [ICRANP] A2 (pronounced ICRA NP A two) to Sarbottam’s bank loan limits.