Palpa Cement IPO Open for General Public
24th February 2026, Kathmandu
The primary capital market in Nepal has reached a new peak of activity as Palpa Cement Industries Limited officially launched the second phase of its Initial Public Offering (IPO) targeted at the general public. Starting on February 24, 2026 (Falgun 12, 2082), the company opened the subscription window for 4.5 million units of shares. This follows the successful completion of the first phase, which was reserved for residents of industry affected areas and Nepali citizens working abroad. As one of the emerging players in the national construction materials sector, Palpa Cement is seeking to capitalize on the increasing demand for high quality clinker and cement driven by Nepal’s massive infrastructure and hydropower projects. By offering these shares at a face value of 100 rupees per unit, the company is providing an accessible entry point for retail investors to participate in the industrial growth of the Lumbini Province and beyond.
Palpa Cement IPO Open
The total capital structure of the Palpa Cement IPO was designed to ensure broad stakeholder participation. The Securities Board of Nepal (SEBON) granted approval for the issuance of 7.5 million shares, representing a total value of 750 million rupees. The allocation was strategically divided to meet regulatory requirements and foster local ownership. Specifically, 1.87 million shares were set aside for residents of the project affected areas, while 562,500 shares were reserved for the migrant worker quota. Additionally, the company allocated 281,250 units each for its employees and various mutual funds. The remaining 4.5 million units now available for the general public constitute the largest portion of the issue, reflecting the company’s goal of building a wide and diverse shareholder base across the country.
Investors interested in the Palpa Cement IPO must adhere to specific application guidelines established by the issue manager, Nabil Investment Banking Limited. The minimum application size is set at 10 shares, requiring a modest investment of 1,000 rupees, while the maximum limit for an individual applicant is 100,000 shares. The subscription window is expected to close at the earliest on February 27 (Falgun 15, 2082). However, if the issue does not receive full subscription by that time, the deadline could be extended until March 10 (Falgun 26, 2082). Given the historical trend of oversubscription in the Nepali cement sector, analysts predict that the issue will likely close on the earliest date. In a scenario where millions of applications are received, a lottery system will be implemented, where approximately 450,000 lucky applicants will receive the minimum lot of 10 shares each.
A critical factor for any investor to consider is the credit rating assigned to the issuer. Infomerics Credit Rating Nepal has provided Palpa Cement Industries Limited with an IRN Double B Plus Issuer Rating. This rating indicates that the company has a moderate degree of safety regarding the timely servicing of financial obligations and carries a moderate level of credit risk. For a manufacturing entity, this rating reflects its operational stability, the quality of its limestone reserves, and its current debt-to-equity ratio. While the rating is positive, it also serves as a reminder for retail investors to perform their own due diligence, considering factors such as the company’s production capacity and its ability to compete with established giants in the Nepali cement market.
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The role of Nabil Investment Banking Limited as the issue and sales manager is vital for the transparency of the allotment process. As a leading merchant bank, Nabil Investment is responsible for coordinating with the C-ASBA member banks to ensure that all applications are processed accurately and that investor funds are held securely until the allotment is finalized. The use of the C-ASBA system has revolutionized the IPO process in Nepal, allowing investors to apply from the comfort of their homes while ensuring that their money remains in their own bank accounts, earning interest, until the shares are actually assigned to them. This system has significantly increased the participation of youth and tech-savvy investors in the primary market, contributing to the deepening of Nepal’s financial ecosystem.
From a strategic perspective, the cement industry is often considered the backbone of a developing economy. In Nepal, the demand for cement is directly linked to government capital expenditure and the progress of national pride projects. Palpa Cement’s entry into the public market comes at a time when the country is looking to reduce its dependence on imported clinker and move toward self-sufficiency in construction materials. The funds raised from this IPO are expected to be used for capital expenditure, including the upgrading of machinery and the expansion of the company’s distribution network. For the long-term investor, the appeal of Palpa Cement lies in its potential to pay consistent dividends as its production scales up and its brand gains more visibility in the retail market.
Furthermore, the listing of Palpa Cement on the Nepal Stock Exchange (NEPSE) will provide much-needed liquidity and price discovery for the shareholders. Once the allotment is complete and the shares are listed, the market will determine the company’s value based on its quarterly earnings reports and future growth prospects. Investors should be aware of the cyclical nature of the construction industry, where demand often fluctuates based on seasonal factors and government policy changes. However, the overall trajectory for the cement sector remains positive as Nepal continues its path toward urbanization and reconstruction. By participating in this IPO, the general public is not just buying shares but is investing in the physical infrastructure that will define the nation’s landscape for decades to come.
In conclusion, the Palpa Cement IPO represents a milestone for both the company and the investing public. With 4.5 million shares available for subscription, it is one of the more significant industrial offerings of the year. The structured allocation, professional management by Nabil Investment Banking, and the moderate credit rating provide a clear framework for potential investors. As the subscription window opens on Falgun 12, the focus remains on the enthusiastic response from the public and the eventual listing on NEPSE. Interested applicants are encouraged to ensure their demat accounts are active and to submit their applications within the earliest possible timeframe to be part of this industrial growth story in 2082.
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