Kathmandu. Sumeru Polymers Limited, the first manufacturer of PVC, HDPE, CPVC pipe and fittings in Nepal, has started its work to raise more capital with a plan to issue shares to the general public next year.
The MoU was signed by Dibash Ghimire, Managing Director of Sumeru Polymers and Kamal Prasad Nepal, Managing Director of Prosperity Ventures.
v. No. Panauti N.P. as a private company in 2074 BS. Ward No. The company, which has set up a factory on about 11 ropanis of land in Kavre and is producing its business, has been converted into a public company in the current fiscal year. The company, which currently has a paid-up capital of Rs 100 million, has increased its issued capital to Rs 270 million along with increasing production capacity. The company plans to issue shares worth Rs 81 million to the general public in the next fiscal year.
The company, which is being run by people with long experience in the field of industry and trade, has signed a Memorandum of Understanding (MoU) to invest with Prosperity Ventures, facilitate investment and provide initial advice to the company on public issues with the intention of raising additional capital of Rs 89 million through new individuals and institutional investments within the current fiscal year.
Dibash Ghimire, managing director associated with successful entrepreneurs and business houses, has been working as the chief promoter and manager since the inception of the company, while Kamal Prasad Nepal, managing director of Ventures, has been working in the banking sector for 14 years in the past and has been working in NMB Capital Limited for more than 14 years from the post of Chief Manager to General Manager. Having worked in the banking and capital market for more than 28 years, Nepal has a long experience in public issue of securities.
The company, which has been trading rs 210 million annually for the last three years, has been raising additional capital and increasing production and expanding the market area. The target is to reach Rs 300 million. At present, the company’s market area is Koshi Province, Madhes Province, Bagmati Province and Sudur Pashchim Province and plans to expand its market area in all seven provinces in the coming years.
According to the financial statement for the fiscal year 2080/81, the net worth of the company is Rs 118 per share and the earnings per share is Rs 8/24. According to the company, if the company is eligible as per the provisions of the prevailing company law and securities law, it will issue shares to the general public at a premium price.
