Shivam Cement Slashes Price of Public Issue; To Provide Additional Shares to Previous Recipients

Feb 12, 2019 Merolagani

Shivam Cement (SCL) has slashed the price of its initial public offering (IPO) to be issued to the general public and residents of Makwanpur. Moreover, the company is set to provide additional shares to Makwanpur residents who are the recipient of the first phase IPO issued to locals of affected area after adjusting the new price.

Issuing a public notice on Tuesday, Shivam Cement informed of floating the 2nd phase IPO from February 18. The company is issuing 4.4 million units shares at the rate of Rs 300 per share to general public and 579,640 units at the rate of Rs 200 to residents of Makwanpur.

The company is issuing the shares at a price of Rs 300 including face value of Rs 100 and premium of Rs 200 to the general public. In case of Makwanpur residents, the face value is of Rs 100 and premium is of Rs 100.

Earlier, Shivam Cement issued its first phase IPO to locals of affected area from July 29 to August 27. The company issued 880,000 units of shares which went undersubscribed. Merely 200,240 units of shares were subscribed during the issue.

According to the notice, the company will provide additional 50 percent shares to the first phased IPO recipients. The remaining 579,000 units of shares are being issued to Makwanpur Residents. If the allotted share goes undersubscribed, the unsubscribed shares will be issued to general public at Rs 300 per share.

On the other hand, out of 4.4 million shares issued to general public, 220,000 were allotted to mutual fund, however, the issue was also undersubscribed. Mutual funds subscribed mere 60,000 units of shares. The remaining 160,000 unit shares from the issue are also being issued to the general public.

Consequently, the company that announced of issuing 3.9 million units of shares to general public earlier, is issuing whopping  4.1 million unit shares to the general public.

The interested investors can apply for a minimum of 50 and maximum of 579,640 units by Makwanpur residents and 4.4 million units by general public.

 

 


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