Through the book-building approach, the Sarbottam cement would be sold at a maximum price of Rs 721. On the basis of the opening bid price, it is determined that the corporation can acquire the shares at that price.
The purpose value package requested by Sarbottam Cement was opened at the Nepal Stock Exchange office on Friday. The price cutoff of Rs 501 was announced. After receiving a request to sell all of the shares for Rs 501, the price was set as a cut-off price.
Friday at 1.30 p.m., the deadline to pay the requested payment, which had been demanded since July 8 of last year, had passed. Sixty-five institutional investors had applied for the intent price as of Friday. On Friday, the results were released.
Now, the company will recalculate the base price using the same intended price and submit an application to the Securities and Exchange Board of Nepal (SEBON) using the same base price and selling price.
According to the results of the bid opened by the firm on Friday, all shares will be sold at Rs 501; thus, the company will set the base price by adding 20% to the same price. Twenty percent added to Rs 501 yields Rs 601 20 paise.
What will the base pricing be? The company’s maximum selling price will be determined by adding 20 percent to the same base price. On this premise, the company’s highest selling price can reach 721 rupees and 44 paise.
However, the corporation has not yet made the pricing public. However, based on the price set on Friday, the company’s maximum permissible selling price will be Rs 721.44. Those who outbid this price will receive shares. However, the company’s shares are certain to sell for between Rs 601 and Rs 721.44.
Sarbottam Cements IPO is one of the most awaited Initial Public Offering.
More about Parent company Saurabh Group.
The journey of Saurabh Group began in Myanmar. Bishnu Prasad Neupane’s father, Lila Ram Neupane, ran a retail business and a butter processing factory in Lashio town, Shan State, Myanmar, until the 1960s. In the 1960s, when Buddhism became the state religion, Nepalese and Indian citizens were forced to leave the country. Lila Ram Neupane decided to leave Myanmar and resettle in Nepal, where he opened his own textiles wholesale store in Bhairahawa. During this time, textiles were transported from Kathmandu and distributed throughout the region. Later, he also acquired the National Trading and Salt Trading Limited dealership.
In 1964, the company took the form of a group and became more diversified. In the early 1990s, Bishnu Prasad Neupane established his first manufacturing venture, Jagdamba Cement Industries, which he assumed responsibility for in 1986.
Saurabh Photo International, the authorized distributor of Konka products, has a strong market presence and has been in the agency trading business since 1990. Currently, the group primarily produces cement, steel, tea, spun yarn, PP Woven fabrics, calcium carbonates, and other similar products. The group’s commercial activities continue with the importation of Konka products, Citizen watch components, and additional Chinese goods.