"We are proposing an estimated price of at least Rs 750 per unit of share to QII," said Bharat Dahal, Chief Executive Officer of Sarwattam Cement.
Before going for book building, the company requires to submit a prospectus disclosing its estimated price with justification as per Book Building Guidelines, 2077 Section 6 subsection 5 to QII. However, QII will give the final issue price to the company which can be the same or lower.
According to Sarwattam Cement, it has already started the procedure. Dahal informed that the company will seek SEBON approval as soon as QII gives the final node to the issue price.
On the basis of SEBON approval, the total offered units will be allocated to QII and NII (Non-Institutional Investors) at a ratio of 40:60. The issue price for NII will be 10 percent less than the price for QII. The general public must apply for a minimum of 50 units of shares. If the allotment takes place through a lottery system, the general public will be allotted at least 50 units of shares.
Currently, the company has a paid-up capital of Rs 4 billion. It is issuing 10 percent of primary shares worth Rs 400 million.
