Kathmandu. Palpa Cement Industries Limited has extended the deadline for submission of applications for the initial public offering (IPO) issued by Palpa Cement Industries Limited after it failed to receive the expected applications.

The company had opened the IPO to the locals from January 25. However, the company has decided to extend the application period after receiving less applications from local residents. Now, the company can apply for the IPO till January 26.

The company has been permitted to issue 7.5 million units of shares i.e. 20% of its issued capital of Rs 3.75 billion. Out of the offered capital, 18,75,000 units of ordinary shares worth Rs 18.75 crore have been issued for the locals of the affected areas.

The IPO is aimed at the locals of West Nawalparasi (erstwhile Nawalparasi district) and Palpa district. Applications can be place for minimum 10 units and maximum 1,00,000 units.

The company has a net present value of Rs 12.99 billion and an internal rate of return of 13.785%. The repayment period is 6 years and 8 months and the discounted return period is 9 years and 12 months.

The total area of the industry is 10 bigha 13 kattha and 12 dhur while the open area of the mine is 172 ropanis 11 anna and 3 paisa 1 price. The company started production of clinker from Baisakh 2076 and cement from Baisakh 2077. Currently, the company has a daily clinker production capacity of 1,800 metric tons and cement production capacity of 2,200 metric tons.

Nabil Investment Banking Limited has been appointed as the issue manager for the IPO issuance. The local people can apply for the shares from Nabil Bank’s Tansen, Bardaghat, Bulingtar and Gaidakot branchs, Prabhu Bank’s Palpa, Bardaghat, Parasi and Belatari branches.

Residents of industries and mines affected areas will have to pay a fee of Rs 2 to receive the share application form. Infomerics Credit Ratings Nepal has assigned “IRN Double B Plus” Issue rating to the company’s credit rating for the IPO issuance, indicating that the company has a moderate risk on its ability to bear its liabilities.