Nepal’s leading steel industry Jagdamba Steels Limited is going to issue an IPO. Many manufacturing companies are in the pipeline to issue IPO to the general public.
Jagadamba Steels IPO
Jagdamba Steels Limited, an investment of Shankar Group, has applied to the Securities Board seeking permission to issue an IPO.
The company applied to the board on October 17 seeking approval for the IPO issue. The company is going to issue an IPO at a face value of Rs 100 per share with a premium of Rs 200 at the rate of Rs 300 per share.
Jagdamba has submitted an application to issue an IPO at a premium of Rs 300 per share. The company is preparing to issue an IPO worth a total of Rs 6 billion.
Jagdamba Steels is giving 20 million shares to common people. The company is going to raise investment of 6.2 billion rupees by issuing 270 thousand ordinary shares.
The company has appointed Siddharth Capital Limited as the securities issue and sales manager for the IPO issue.
Jagdamba, the largest company in Nepal, occupies 35 percent of the total steel industry market. Among the industries in the market, Jagdamba is also recognized as the industry that consumes the most electricity for the last 15 years.
According to the latest details of the industry, it pays electricity tariff of Rs. 20 crore per month. Last year alone, the company paid 6.35 billion rupees in taxes to the government.
In the financial year 2078/79, the company paid 10.6 million income tax and collected 4.83 billion rupees in VAT that year.
Similarly, more than one billion 41 crore 25 lakh rupees was paid to the government in customs duty. In the last financial year, the company had an operating income of 40 billion 17 million.
Similarly, in the financial year 2078/79, it had a turnover of 49.74 billion.
