Palpa Cement IPO Issue Opens Fagun 12
11th February 2026, Kathmandu
Palpa Cement Industries Limited has officially announced the opening of its Initial Public Offering (IPO) for the general public starting from Fagun 12, 2082 (February 24, 2026). This follow-up issuance comes after the company successfully completed the first phase of its IPO, which was reserved for project-affected locals in West Nawalparasi and Palpa, as well as Nepalese citizens working abroad.
Palpa Cement IPO Issue
As a prominent member of the RMC Group, Palpa Cement is a greenfield project that has quickly become a significant player in Nepal’s construction material sector through its “Tansen Cement” brand.
IPO Structure and Allocation
The company is issuing 20% of its total issued capital to the public. With a total issued capital of NPR 3.75 billion, the IPO size is worth NPR 750 million.
Total Public Issue: 7,500,000 shares
Locals and Migrant Workers (Completed): 2,437,500 shares were allocated in the first phase.
Reserved for Mutual Funds: 281,250 shares (5% of the general public quota).
Reserved for Employees: 281,250 shares (5% of the general public quota).
Available for General Public: 4,500,000 shares.
The shares are priced at a face value of NPR 100 per unit. Given the current trend of IPO oversubscriptions in Nepal, the 4.5 million shares are expected to be allotted at a rate of 10 shares per successful applicant through a lottery system.
Key Investment Dates
Investors should mark their calendars for the following timeline:
Issue Opening Date: Fagun 12, 2082.
Early Closing Date: Fagun 15, 2082.
Final Closing Date: Fagun 26, 2082 (only if under-subscribed).
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Application Limits: Minimum of 10 shares (NPR 1,000) and a maximum of 100,000 shares.
Company Profile: Palpa Cement Industries
Established in 2009, Palpa Cement operates a state-of-the-art plant in Sunuwal, Nawalparasi, with its own limestone mines located in Rahawas, Palpa.
Technology: The plant utilizes Vertical Rolling Mill (VRM) technology, which is more energy-efficient and produces higher-quality cement compared to older ball-mill technology.
Capacity: The plant has an annual production capacity of 0.59 million metric tonnes of clinker and 0.73 million metric tonnes of cement.
Market Position: The company is part of the RMC Group, which has been in the cement business since 2011. This experience provides a significant competitive edge in distribution and branding.
Credit Rating and Risk Factors
For this IPO, Infomerics Credit Rating Nepal has assigned an IRN BB+ (Is) rating to the company.
What does IRN BB+ mean?
This rating indicates a moderate risk of default regarding the timely servicing of financial obligations. While the company has strong promoter backing, it faces intense competition from approximately 55 other operational cement units in Nepal.
How to Apply
Eligible investors can apply through the C-ASBA (Centralized Applications Supported by Blocked Amount) system. This can be done via:
Mero Share (Online portal or mobile app).
Any SEBON-approved bank or financial institution where you hold an account.
The issue is managed by Nabil Investment Banking Limited, ensuring a streamlined process for retail participants.
Conclusion
The Palpa Cement IPO Issue represents a rare opportunity for retail investors to enter the manufacturing and processing sector of the Nepal Stock Exchange (NEPSE), which is currently dominated by hydropower and financial institutions. While the company carries a moderate risk rating, its integrated “mine-to-market” model and modern VRM technology make it a noteworthy contender for long-term portfolios.
For More: Palpa Cement IPO Issue
