Palpa Cements Industries Private Limited (PCPIL)

Palpa Cement Industries Limited (PCIL) is a Nepal-based cement manufacturing company that is now preparing to issue its Initial Public Offering (IPO) for the general public, following the completion of the share allotment to project-affected local residents of West Nawalparasi.

The company has an issued capital of NPR 3.75 billion, out of which 20% (7.5 million unit shares) has been approved for public issuance. From this, 5% (1.875 million unit shares) were allocated to project-affected locals. The company will now issue the remaining 15% (5.625 million unit shares) to the general public.

The IPO issue manager is Nabil Investment Banking Limited, and investors can apply through the C-ASBA system using banks and financial institutions approved by the Nepal Securities Board, as well as through the Mero Share online platform.

In terms of credit quality, ICRA Nepal has reaffirmed the company’s [ICRANP] LBB rating for long-term loan facilities and [ICRANP] A4 rating for short-term loan facilities. These ratings indicate a moderate level of credit risk, and the ratings have been removed from “Watch with Negative Implications.”

Established in 2009, Palpa Cement Industries Limited is a greenfield cement manufacturing company. The company began clinker production in April 2019 and cement production in January 2020. Its manufacturing plant is located in Sunuwal, Nawalparasi, with limestone mines situated in Rahawas, Palpa.

The company has an annual production capacity of 0.59 million metric tonnes of clinker and 0.73 million metric tonnes of cement, and uses Vertical Rolling Mill (VRM) technology for efficient production. PCIL is part of the RMC Group, a well-established business house in Nepal, and operates from its registered office in Thapathali, Kathmandu.

Palpa Cements Industries Private Limited (PCPIL) has launched its IPO in the Manufacturing sector, seeking to raise Rs. 0. The offering consists of 7,500,000 units priced at Rs. 100.00 per unit, with Nabil Investment Banking Ltd. serving as the issue manager.

The subscription period, which is open to General Public, is scheduled from To be announced to To be announced, with a minimum application requirement of 100 units.