CIT to underwrite Mahashakti Cement share issue worth Rs 1.78bn

KATHMANDU: Citizen Investment Trust (CIT) has agreed to underwrite an upcoming share issue for Mahashakti Cement valued at Rs 1.78 billion.

Under the terms of the contract, Mahashakti Cement will issue 17,850,857 shares at a par value of Rs 100 per share, raising total capital of Rs 1,785,085,700.

Executive Director Parbat Kumar Karki signed an agreement formalising the deal in Kathmandu on Friday on behalf of CIT, and Managing Director Raja Ram Khadka on behalf of Mahashakti Cement.

The contract requires that the cement manufacturer complete the public offering within six months of signing. If the company does not issue the shares within that timeframe, the arrangement will lapse, and the parties will need to sign a new agreement.