Elite Capital underwrites 1.7m shares of Kantipur Pharmaceuticals worth Rs 170m

KATHMANDU: Elite Capital has taken responsibility for underwriting the shares of Kantipur Pharmaceuticals Lab, which is currently in the process of selling its ordinary shares. An agreement to this effect was signed between Elite Capital and Kantipur Pharmaceuticals Lab on Tuesday.

Elite Capital has underwritten 1.7 million units of Kantipur Pharmaceuticals Lab's ordinary shares, valued at Rs 170 million. The agreement was signed by Nawaraj Poudel, managing director of Kantipur Pharmaceuticals Lab, and Dinesh Acharya, executive chairman of Elite Capital. Kantipur Pharmaceuticals Lab has submitted an application to the Securities Board of Nepal (SEBON) for the share sale, with Muktinath Capital serving as its sales manager.

The company, which has a paid-up capital of Rs 630 million, has initiated the process of issuing 1.7 million units of IPO shares at a face value of Rs 100 per share. Established in 2018, the company conducts research on veterinary medicines and produces and distributes nutritional supplements for fowls.

The company has already received production approval from the Department of Drug Administration (DDA) for 61 medicines. Among these, 13 medicines have obtained sales and distribution certificates and are being sold in the Nepali market. The company stated that the process of obtaining sales and distribution certificates for the other medicines is ongoing. Additionally, the company is producing and distributing 21 other dietary supplements.

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