Sagar Distillery to Launch IPO for Public from Sept 10
Sagar Distillery will open its IPO from Sept 10, offering 1.19 million shares worth Rs 1.19B to the public.
Kathmandu, Sept 2 (Nepalytix) — Sagar Distillery Ltd is set to open its Initial Public Offering (IPO) to the general public from September 10 (Bhadra 25), marking another addition to Nepal’s steadily expanding beverage sector listings.
The company has approval to issue 20% of its Rs 726 million paid-up capital, equivalent to 1.45 million shares. Of this, 145,200 shares (10%) were already allocated to Nepali workers abroad, while 72,600 shares (5%) were reserved for mutual funds and 43,560 shares for company employees.
The upcoming tranche for the public will comprise 1.19 million shares worth Rs 1.19 billion, at a face value of Rs 100 per share. Applications will be open until Sept 14 (Bhadra 29), with a possible extension to Sept 23 (Asoj 8) if subscriptions fall short. Investors can apply for a minimum of 10 shares and a maximum of 10,000 shares.
Credit rating agency Infomerics Credit Rating Nepal assigned the issue an IRN Single B+ rating, signaling a high-risk profile in terms of timely debt servicing capacity.
Muktinath Capital Ltd has been appointed as the issue and sales manager. Investors can apply through all ASBA-member banks, financial institutions, and via MeroShare online platform.
Analysts note that while the liquor and distillery segment has growth prospects amid rising domestic demand, the relatively weak credit rating highlights risk factors that cautious investors should consider before subscribing.