The IPO allotment for Nepal Warehousing Company Limited concluded today at the headquarters of the issue manager, Himalayan Capital Limited, located in Kathmandu.
Nepal Warehousing Company Limited had issued 11,41,250 units of IPO shares at a par value of Rs. 100 to the general public from the 10th to the 13th of Mangsir, 2080. Out of the total 13,75,000 units offered, 10% (1,37,500 units) were allocated to Nepalese citizens working abroad, 2% (27,500 units) were set aside for the company’s employees, and 5% (68,750 units) were designated for mutual funds. The remaining 11,41,250 units were made available for the general public.
The IPO garnered substantial interest, receiving applications from 11,91,988 valid applicants who collectively applied for 1,26,56,720 units. The oversubscription rate exceeded 11.09 times. In the allotment process, 1,14,125 applicants were allotted 10 units each through a lottery system, while the remaining 10,77,863 applicants did not receive any allotment. Mutual funds were allotted 68,750 units, and 27,500 units were allocated to the company’s employees. However, 3,661 applicants who applied for 48,730 units were disqualified.
The IPO result can be accessed through platforms such as CDSC IPO Result, MeroShare, and Himalayan Capital Limited.
ICRA Nepal has reaffirmed the issuer rating of [ICRANP-IR] BB- to Nepal Warehousing Company Limited, indicating a moderate risk of default concerning the timely servicing of financial obligations.
Nepal Warehousing Company was established under the Company Act, 2063 of Nepal, with the primary objective of addressing the warehousing needs of farmers, traders, millers, and businessmen involved in grain trade for commercial and industrial purposes. The company aims to mitigate post-harvest losses, maintain product quality, and provide a suitable environment for long-term grain storage. To achieve this, the company has installed high-quality silos with a capacity of 55,000 MT at three different locations in provinces 1, 2, and Lumbini.