KATHMANDU, June 20: The CDS and Clearing Limited (CDSCL) has cautioned the investors of primary market not to purchase initial public offerings (IPOs) of a listed company in excess to the deposit that they have in their bank account.
After the Securities Board of Nepal (Sebon) suspended the IPO issuance process of Ghorahi Cement, the CDSCL put forth the cautionary note to the investors. “Anyone found breaching the guidelines will face a serious action,” reads the CDSCL press release.
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Ghorahi Cement on June 15 floated its primary shares in public. The company fixed the premium rate of Rs 435 per share to sell its IPOs. The company looked to extend the deadline of the final subscription, citing that many investors were canceled mainly due to the mismatch in the money in the bank account and the applied amount of shares.
Ghorahi Cement issued 6,911,670 units of shares to the public. In just around a week, 528,166 individuals applied to purchase the company’s IPOs worth Rs 14.057 million. Suresh Neupane, information officer of the CDSCL, said the front line regulator was compelled to take action after the excess applications were found to be affecting the issuance process.
