Kathmandu. Palpa Cement Industries is issuing the initial public offering (IPO) from January 10. The company is going to issue IPO for the local residents of the industry-affected areas and the Nepalese employed abroad.

The company was allowed to issue 7.5 million units of shares worth Rs 750 million, which is 20% of the issued capital of Rs 3.75 billion. Out of the offered capital, 18,75,000 units of ordinary shares i.e. 18.75 crore units of shares at a price of Rs 18.75 crore will be issued to the locals of the affected area.

The company is going to issue the shares to the locals of the industrial-affected area of West Nawalparasi (then Nawalparasi district) and Palpa district. In addition to this, the company is issuing 5,62,500 units of ordinary shares at a face value of Rs 100 per share i.e. 10% of the total amount of shares allotted to the general public.

Applications can be place for minimum 10 units and maximum 1,000,000 units. For the locals of the affected areas, the issue will be closed on January 22 at the earliest and the latter will be on February 25. Similarly, the exodus for Nepalis who are in foreign employment will be closed on January 30 and January 22 at the latter.

The company has a net present value of Rs 12.99 billion and an internal rate of return of Rs 13.785. The company’s general investment return period is 6 years and 8 months and the redemption period is 9 years and 12 months.

The total area of the factory is 10 bigha 13 kattha and 12 dhur and the open area of the mine is 172 ropanis 11 anna 3 paisa 1. The company has been producing clinker since April 2076 and cement since April 2077. The company has a daily clinker production capacity of 1,800 metric tons and cement production capacity of 2,200 metric tons.

Infomerics Credit Ratings Nepal has assigned IRN Double B Plus Issue Rating to the company. This indicates that there is a moderate risk to the company’s ability to meet its obligations.