Himal Press 
KATHMANDU: Following reports of discrepancies in its credit rating procedures, the Securities Board of Nepal has suspended the initial public offering (IPO) of Ghorahi Cement Industries Pvt Ltd.
The securities market regulator took the decision after the company extended the timeframe to apply for its primary shares even after the issue was oversubscribed.
The company launched its public offering on June 15, and the issue was valid until Sunday. Although the issue was oversubscribed, the company extended the timeframe to apply for its primary shares until Monday.
Ghorahi Cement is offering its primary shares with a face value of Rs 100 each, adding a premium of Rs 335 per unit.
“Although we had asked the rating agency, Care Rating Nepal Ltd, to clarify within three days whether its credit rating of Ghorahi Cement Industries Ltd is in violation of Rule 34 Sub-Rule (2) of the Credit Rating Regulations, 2011, we haven’t heard from them. As the company published a notice to extend the timeframe of its IPO even after its issue was oversubscribed, we have suspended the IPO for the time being to study the credit rating and other related issues, taking into consideration the protection and interests of consumers,” Sebon said in a letter written to the issue manager, Himalayan Capital Ltd.
Earlier in the day, the CDS and Clearing Company Ltd notified Sebon about a large number of fake applications for the company’s shares.
