Sagar Distillery Delays IPO Launch Citing Market Challenges

Sagar Distillery Limited has postponed its planned Initial Public Offering (IPO), which was scheduled to open for the general public on Bhadra 25, 2082.

In a notice published on Wednesday, the issue manager Muktinath Capital Limited stated that the IPO issuance has been deferred until further notice, citing the prevailing adverse conditions in the country.

The company had received approval to issue 1,452,000 shares, equivalent to 20% of its NPR 726 million paid-up capital, valued at NPR 145.2 million.

Of this, 145,200 shares (10%) had already been allocated and distributed to Nepalis working abroad, while 72,600 shares (5%) were allotted to mutual funds. Additionally, 43,560 shares were reserved for the company’s employees.

The remaining 1,190,640 shares (NPR 119 million) were to be issued to the general public. However, with the postponement, this tranche will now be delayed until a fresh notice is issued.

The postponement underscores the challenges companies face in tapping the capital market during uncertain conditions, even as investor appetite for IPOs remains strong.