Sagar Distillery Unveils IPO to Harness Diaspora Capital for Industrial Growth, Starting Today
Sagar Distillery Limited has opened its IPO today, Shrawan 28, exclusively for Nepalese working abroad. The issue will remain open until Bhadra 1.
ShareSanskar | Shrawan 28, 2082
Sagar Distillery Limited has opened its Initial Public Offering (IPO) worth NPR 145.2 million, specifically targeting Nepalese working overseas. This issuance represents 20% of the company’s NPR 726 million issued capital, offering 1,452,000 shares at a face value of NPR 100 each. The move reflects the company’s commitment to expanding its shareholder base while channeling diaspora savings into Nepal’s industrial growth.
Of the total shares, 145,200 units, valued at NPR 14.52 million, are reserved exclusively for Nepalese migrant workers holding valid government labor permits. Investors can apply for as few as 10 shares (NPR 1,000) and up to 7,000 shares (NPR 700,000), creating opportunities for both small-scale investors and larger participants in the diaspora. This approach not only mobilizes remittance flows for productive use but also encourages overseas Nepalis to become long-term stakeholders in domestic enterprise growth.
The IPO carries an IRN B+ credit rating from ICRA Nepal, indicating higher-than-average risk. This suggests potential challenges in areas such as cash flow stability, competitive market positioning, and regulatory compliance within Nepal’s beverage sector. While the alcoholic beverage market is growing, fueled by urbanization, tourism, and shifting consumer habits.
Managed by Muktinath Capital Limited, the issue will remain open until Bhadra 1, with a possible extension to Bhadra 11 if under-subscribed. Applications can be made through the C-ASBA system via participating banks and financial institutions. For overseas investors, this IPO represents both a chance to support Nepal’s industrial growth and a reminder to carefully weigh the risks before committing capital.
