Ghorahi Cement Rights Share Issue Application Submitted
25th March 2026, Kathmandu
The Ghorahi Cement Rights Share issuance has reached a critical regulatory milestone as Ghorahi Cement Industry Limited officially submitted its application to the Securities Board of Nepal (SEBON).
Ghorahi Cement Rights Share
Seeking to raise approximately NPR 3.76 billion, the company has proposed a rights offering in a 1:0.75 ratio. This move is a strategic step toward strengthening the industrial giant’s capital base and financing its ambitious expansion projects within Nepal’s competitive manufacturing sector.
Key Details of the Rights Offering
The Ghorahi Cement Rights Share proposal aims to offer existing shareholders the opportunity to increase their stake in the company at a proportional rate.
- Ratio: 1:0.75 (75% rights issue). For every 100 shares held, an investor can apply for 75 additional shares.
- Total Units: 37,683,407.03 units of rights shares.
- Total Value: Approximately NPR 3.76 billion.
- Price: Issued at the par value of NPR 100 per share.
The board’s decision to proceed with this issuance was formally endorsed during the company’s 4th Annual General Meeting (AGM) held on Poush 27, 2081.
Issue Management and Regulatory Status
To ensure a transparent and efficient distribution process, Himalayan Capital Limited has been appointed as the issue and sales manager.
As of March 24, 2026 (Chaitra 11, 2082), the application is officially under review in the SEBON Rights Share Pipeline. This regulatory phase involves a thorough vetting of the company’s financial health, the intended use of the raised capital, and compliance with the Securities Act. Once SEBON grants final approval, the company will announce the Book Closure Date, which will determine the eligibility of shareholders for the offering.
Strategic Financial Recovery and Growth
The Ghorahi Cement Rights Share issue is seen by analysts as a “turnaround” move following the company’s complex IPO journey in 2023. By raising nearly 4 billion rupees in equity, Ghorahi Cement aims to:
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Reduce Debt Burden: Offsetting high-interest bank loans to improve the company’s net profit margin.
Operational Efficiency: Investing in waste-heat recovery and energy-saving technologies at its Dang plant.
Market Competition: Maintaining its position as a top-tier producer capable of meeting the heavy demands of national pride projects like the Nijgadh Expressway and various hydropower dams.
Recent Dividends and Listing Updates
While the Ghorahi Cement Rights Share issue is pending, the company has remained active in providing returns to its investors.
Bonus Listing: On March 3, 2026, NEPSE officially listed 4,567,685.70 units of bonus shares (6.65% for FY 2081/82).
Current Market Position: As of late March 2026, the company’s stock (Ticker: GCIL) continues to be a high-volume performer in the “Manufacturing and Processing” sector, reflecting sustained investor interest despite broader market volatility.
Conclusion
The submission of the Ghorahi Cement Rights Share application marks a defining moment for one of Nepal’s largest industrial players. By proposing a 75% rights issuance managed by Himalayan Capital, Ghorahi Cement is signaling its readiness for a new phase of financial stability and operational expansion. Investors and stakeholders are now awaiting the final nod from SEBON, which will trigger one of the largest capital-raising events in the manufacturing sector this year.
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