SARBOTTAM CEMENT-IPO(Initial Public Offering) -upcoming IPO Nepal.
Brief Information about Sarbottam Company:
SCML(Sarbottam Cement Limited) is one of the best Cement manufacturers companies in Nepal, located in Nawalparasi,state-5(Headquarter). Sarbottam cement is one of the best cement in Nepal. This is one of the good brands in the Nepalese Market.
Since its establishment year, This company has remained the best in the cement manufacturing business in Nepal. This company uses a completely European production line.
The Company produces cement through the use of a VRM( vertical Roller mill.).The use of VRM or this innovative technology helps the company to save up to 50 % in energy consumption, thereby drastically reducing the company’s carbon footprint.
In this regard, the company is one of the good companies which manufacture echo-friendly or green-Cement(Green cement is a form of cement produced with the help of a “carbon-negative manufacturing process.)
Sarbottam Cement company has purchased various mines in limestone-rich Chitwan and Palpa. These mines make available to the company some of the finest limestone in the country, and as a result, the company is able to deliver to their customers the highest quality cement.
Bishnu Prasad Neupane owns Sarbottam cement. He is Executive Chairman of Sarbotam cement Pte ltd.
Sarbottam Cement has passed the proposal to issue share through Book Building Method at the annual general meeting held on 2 Magh, 2077. This company will bring IPO through Book Building Method. The company has appointed Global IME Capital as issue Manager for the IPO Issuance.
The company has set 24,00,000 (24 lakhs )units share for Institutional investors, while the company has set 300,000(3 lakhs ) units share for employees, in the same way, the company has set 800,000(8 lakhs) units share for local people.
The company has decided to issue a total of 60 lakhs units IPO share. The remaining share of 25,00,000 units has been set for the general public by the company.
The current paid-up capital of this company is 3 billion 40 crores and the paid-up capital of this company will reach 4 billion after IPO.
Operated since October 2010, this company is selling Cement and clinker. The company has been producing OPC and PPC cement. The company’s production capacity was earlier in the day was 1200 tons per day, but now the company is increasing its capacity to 2990 tons per day as per the 2019 data.
The construction of a lending machine with a production capacity of 1800 tons per day is under construction.
This will further increase the capacity of cement production of the company. According to the company, the company will come with a new plant to double the production capacity, which will take four years, after which the company’s annual return will be more than 75%.
While doing fundamental analysis, let’s talk about the good side of this company. Within the first three months of issuance of IPO, Company is planning to provide a 10% bonus and 25% cash to the investor.
Similarly, when the IPO is issued, the value of the company’s reserve will be more than Rs 6 billion, which will add value to the company.
ICRA Nepal has given the company a triple b + rating(BBB+). ICRA Nepal has also projected that this company can give more return. The management of this company is very strong. Saurabh Group has 62% investments in this company.
Looking at the company’s profit growth of last three years, it seems that this company has a 32% profit growth which means this is a good company and will continue to do so in the coming days. Now let’s talk about the bad aspect of this company.
There is a lot of competition right now which is the kind of company that has to compete with other companies to increase this company and there are about 50 cement manufacturing companies in the cement industry and what new companies are also preparing to come into operation. Which is treated as a bad aspect for this company.
In the internal valuation of the company, the company has set a price of Rs 750 per share, but the final price will be determined by the eligible institutional investors through the bidding method.
What is the price of 1 unit share of Sarbottm Cement IPO?
Who owns Sarbottam cement?
Sarbottam cement price in Nepal?
Upcoming IPO Nepal
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