Kathmandu. The financial condition of the Ghorahi Cement Industry and the latest credit rating paint a grim picture of how ordinary investors are trapped in the trap of premium prices.
According to the new ratings released by Infomerics Credit Ratings Nepal in February 2026, the company’s Issue Rating and Bank Facilities rating have been downgraded. At the time of the IPO issuance, Bishal Group, which is also a partner of Ghorahi Cement, had received a credit rating from Care Ratings Nepal, a private investment company.
Lately, Vishal Group has been getting the credit rating work done by Infomerics Nepal for most of the companies including Ghorahi Cement. It has been alleged that Infomerics Nepal is indirectly controlled by another business group, Shankar Group.
The company’s reputation continues to decline. The credit rating for the company’s long-term debt has been downgraded from ‘Double B Plus’ to ‘Double B’. This indicates that there is a moderate level of risk in meeting financial obligations on time.
FY 2080. By the end of ’81, the company had a huge net loss of Rs 1.44 billion. According to the latest report, the company is still in deep trouble if the loss had come down slightly to Rs 66.37 crore.
Presently, the company has net profit of Rs 14.46 per share. Which makes it clear that there is no situation to give any return to the investors.
Ghorahi Cement had issued its shares to the general public at Rs 435 (Rs 335 plus premium at the face value of Rs 100). However, the IPO process itself was mired in controversy.
The Securities Board of Nepal (SEBON) had to postpone the IPO after it was confirmed that the number of applications was more than the demand.
The financial statements themselves revealed that the company had manipulated the financial statements to get a premium price and hid the reality.
In the annual reports, an attempt was made to show more profit by underestimating the depreciation expenses of machinery and other assets purchased a few years ago. In addition, the net worth of the company was artificially inflated by re-evaluating the land and machinery.
The selling of shares at a high premium by manipulating the financial indices of a loss-making company has become a black spot for the Nepali capital market. At present, its share price has fallen far below the premium price in the market, sinking billions of dollars of ordinary investors.
Investors have fallen prey to such policy fraud due to lax oversight by regulators and the controversial role of credit rating agencies.
