Saptakoshi Cement to Issue IPO for the Public; Siddhartha Capital Appointed as Issue Manager
27th November 2025, Kathmandu
Saptakoshi Cement Limited is preparing to enter the capital market with an Initial Public Offering (IPO) for the general public.
Saptakoshi Cement IPO Issue
To manage this significant undertaking, the company has officially appointed Siddhartha Capital Limited as the issue and sales manager.
IPO Details and Manager Appointment
The formal process for the public offering has commenced, with the companies outlining the scope of the IPO and formalizing their partnership.
Offering Size: Saptakoshi Cement Limited plans to offer 20 percent of its paid-up capital to the public.
Pricing: The shares will be issued at their face value of NPR 100 per share.
Formal Agreement: A formal agreement between the two parties was signed on Mangsir 10 at the company’s office in Tripureshwor, Kathmandu. The agreement was signed by Mona Jalan, Chairperson of Saptakoshi Cement Limited, and Sandeep Karki, Chief Executive Officer of Siddhartha Capital Limited. Siddhartha Capital will now oversee all activities related to the IPO, including regulatory filings with the Securities Board of Nepal (SEBON), book-building (if applicable), and final allotment.
Company Profile and Market Performance
Saptakoshi Cement Limited is recognized as a key player in Nepal’s cement manufacturing sector, known for its high capacity and strong regional market share.
Production Capacity: The company is classified as a high-capacity cement producer, boasting a daily production capacity of 600 tons.
Product Quality: Saptakoshi Cement manufactures OPC (Ordinary Portland Cement) in both PPC 43 and 53 grades, ensuring compliance with Nepal’s established quality standards. This range allows the company to cater to different construction needs, from general building to high-strength infrastructure projects.
Operational Profitability: The company has maintained consistent operational profitability since 2019, demonstrating sound financial management and resilience in a market that often faces stiff competition and high energy costs.
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Market Share: Saptakoshi Cement holds a substantial market position in eastern Nepal, accounting for approximately 20 percent of the market share in that region. This regional dominance highlights its strong brand recognition and extensive distribution network in eastern Nepal.
Recent Financial Performance and Dividend
The company’s recent performance has been robust, indicating strong operational execution and a commitment to rewarding its current shareholders.
Sales Growth: In the fiscal year 2024/25, Saptakoshi Cement achieved a remarkable 27 percent higher sales target compared to the previous year. This significant year-on-year growth suggests successful market capture and effective sales strategies against regional competitors.
Dividend Distribution: The company demonstrated its profitability by issuing a 12 percent bonus share from the profits accumulated during the same fiscal year, 2024/25. This dividend issuance is a positive signal of financial health as it indicates the company is profitable enough to share returns with its shareholders while also strategically increasing its paid-up capital.
Utilization of IPO Proceeds and Future Strategy
The primary goal of the IPO is to raise capital that will be strategically injected back into the company’s core manufacturing operations to ensure long-term sustainability and enhanced competitiveness.
New Clinker Plant: A major portion of the capital raised will be used to establish a new clinker plant. Clinker is the primary raw material for cement production; having an in-house clinker unit reduces reliance on imports and external suppliers, lowering costs and increasing operational control.
Existing Plant Expansion: Funds will also be utilized to expand the capacity of the existing cement plant. This directly translates to increased production volume, enabling the company to capture a larger share of the rapidly growing national construction market.
Strategic Outcomes: These investments are expected to yield several critical strategic benefits:
- Enhanced operational integration (through the new clinker plant).
- Strengthened competitive capacity (through higher volume and lower costs).
- Improved financial performance (through greater efficiency and sales).
- Support for long-term growth for the company as it scales its operations.
The IPO launch marks a pivotal moment for Saptakoshi Cement, facilitating its transition to a publicly listed entity and securing the necessary capital to finance its next phase of vertical integration and market expansion in the competitive Nepalese cement industry.
For More: Saptakoshi Cement IPO Issue
