The regulatory body gave approval of issuing 1.35 million units of ordinary shares of the company.
The company will issue 1,365,000 units of shares at a face value of Rs 100.
In the first phase, the company will issue 10 percent of IPO to foreing migrated workers of Nepal and the rest to the general public in the second phase.
Nepal Warehousing Company is established under the Company Act, 2063 of Nepal to cater to the warehousing needs of the farmers, traders, millers and businessmen who deal in trade of grains for their commercial and industrial purposes.
These actors more often face post-harvest losses, degraded quality of the product for further use and most frequently face problems of keeping grains in healthy environment for long time period.
In order to keep the quality of grains stored intact for long time, the Nepal Warehousing Company Ltd (NWCL) has brought the solution by installing high quality silos of 55,000 MT capacity at three different places in the province number 1, province number 2 and in Lumbini province.
The company has vison of establishing a leading warehousing company in country to deal in all ranges of agri-products, of helping farmers, aggregators to resolve their constant problem of properly storing their products until they really fetch the satisfactory market price of the products and of providing state of art services to all stakeholders of warehousing company.
Similarly, it has mission to help government to create infrastructure for auction market of primary agriculture products such as grains, vegetables and fruits, to help farmers realize the real price of their products, to protect the clients with any natural or man-made calamities they may encounter while keeping their products at their premises, to help banking and financial institutions finance in agriculture business by issuing warehouse receipt to the clients who come to the warehousing company to store their product and toliaise with different actors of agri-business.
The estimated cost of developing and operating the project remained at Rs 1.62 billion in which it is self financing Rs 940 million. The remaining amount is being financed through consortium loan lead by Everest Bank in association with Nepal SBI Bank, Himalayan Bank, Bank of Kathmandu and Agriculture Development Bank.
Companies including Nimbus Group, Shikhar Insurance, Probiotic Industries, Shreenagar Agro Farm, NMB Bank, Team Ventures, TNI, Nifra, Muktinath Agriculture, Himalayan Capital, IME General Insurance, Hathaway Investment, Alpha Investmetn, Aadhyanata Fund Management have invested in the company.
Currently, the company has a paid-up capital of Rs 550 million. The company is planning to raise Rs 137.5 million through IPO.
