Sarbottam Cement to issue IPO
The best cement has been dragged into controversy even before it brought shares through book building method. Other companies in the pipeline market have also been shocked after the IPO issue in the book building that Sarvottam was trying to bring.
Managing Director of Sarvottam Cement, Bishnu Neupane, has said that the shares will be made public within the next five years. Neupane said that he has applied to the Nepal Stock Exchange (NEPSE) to issue shares from Book Building. He said that the shares will be made public within a month.
At least half a dozen companies were preparing to bring in shares if the best shares were not in dispute. Now almost all the companies are frustrated.
Before bringing the shares in the book building, the regulatory body Nepal Securities Board and the managers of the Nepal Stock Exchange had bought the shares cheaply in the name of their families.
For the first time in Nepal, the book building method is being pushed. Many private sector companies in the market were interested in bringing shares in book building.
The best cement had already come forward while Arghakhanchi Cement, Dis Home, Ambe Cement, IME and others had proposed to issue IPO from the book building.
Companies including Reliance Spinning Mill were unofficially preparing to bring IPO through book building. Similarly, in the second phase, IME Reliable Life, Citizens Life and other hydropower companies would also bring in book building.
Sarvottam had already appointed Global IME Capital as the sales manager for the issue of securities. The best had even passed a proposal to issue 6 million IPOs.
While preparing to go to the Securities and Exchange Board of Nepal (SEB) to seek permission from the government body, the company came into controversy without formally seeking permission after it came out that Bhishma Raj Dhungana, chairman of the board, had bought the company’s shares.
The best bet is to sell cheap shares at a high price by influencing the governors of the regulatory body. Sarvottam had given shares in advance to the chairman and operator of the Nepal Securities Board and to the issuer and sales manager of Global IME Capital and the CEO of Nepal Stock Exchange (NEPSE) and some big investors in the market.
The process of issuing IPO through book building method has not been taken further. However, Neeraj Giri, executive director of the Securities and Exchange Board, said that other companies in the market would seek permission to issue shares through book building method. Arthapath has written.