Time Pharmaceuticals Limited, one of Nepal's long-running pharmaceutical manufacturers based in Gaindakot, Nawalparasi, is moving ahead with its Initial Public Offering (IPO) through the book building method. After completing competitive bidding among Qualified Institutional Investors (QIIs), the company has determined the price at which general public investors will be able to buy its shares. This article explains how that price was set, what it means for retail investors, and what to expect next.
Company Overview
Time Pharmaceuticals has been operating in Nepal's healthcare sector for more than three decades. Its head office and production plant are located in Gaindakot, Nawalparasi, in Gandaki Province, with an additional marketing office in Lalitpur. The company employs around 300 staff and manufactures over 200 medicines across multiple therapeutic categories under WHO-GMP certified standards, with well-known brands including Sinex, Paraflam, Salif, Pulmarin, AZT, and Himox, among others.
To manage its share issuance, Time Pharmaceuticals appointed Nabil Investment Banking Limited as its Issue Manager, and it signed a formal agreement with the Nepal Stock Exchange (NEPSE) to conduct the offering through the book building process rather than the traditional fixed-price route.
What Is the Book Building Method?
Unlike a traditional IPO in Nepal, where shares are usually issued at a fixed par value of Rs 100, the book building method lets the market help discover a fair price. Under this approach, a company must first have been profitable for three consecutive years, and its net worth per share must be at least half of its paid-up capital before it becomes eligible. Once approved, 40 percent of the total issue is sold to Qualified Institutional Investors (QIIs) such as mutual funds, insurance companies, and merchant bankers through competitive bidding, while the remaining 60 percent is reserved for the general public, non-resident Nepali (NRN) workers, and company staff at a discounted price.
Share Allocation Structure
Time Pharmaceuticals plans to raise about Rs 10.86 crore by issuing 10,86,500 ordinary shares, equal to 20.50 percent of its total issued capital. Once this issuance is complete, the company's total paid-up capital will rise to Rs 53 crore.
How the Rs 450 Public Price Was Determined
The pricing journey for this IPO followed several stages. An independent valuation first placed Time Pharmaceuticals' average fair value at around Rs 666.78 per share, based on methods including discounted cash flow, net worth assessment, and relative price-to-earnings comparisons. For the institutional bidding round, the company set a floor price of Rs 600 per share. After competitive bidding among QIIs, the cut-off price was finalised at Rs 500 per share. Under Securities Board of Nepal (SEBON) rules, general public investors receive a mandatory 10 percent discount on this cut-off price, which brings the final public offer price to Rs 450 per share.
Application Details for General Public Investors
| Detail | Information |
|---|---|
| Offer price for general public | Rs 450 per share |
| Shares reserved for general public | 6,51,900 units (60% of total issue) |
| Minimum application size | 50 units |
| Face value | Rs 100 per share |
| Eligible applicants | General public, non-resident Nepali (NRN) workers, and company staff |
| Issue Manager | Nabil Investment Banking Limited |
Since this is a book-building IPO, retail investors must apply for a minimum of 50 units rather than the smaller minimum sometimes seen in fixed-price IPOs. Applications for this category are expected to be submitted the same way as other NEPSE IPOs — through the Mero Share portal or C-ASBA member banks and financial institutions — once the general public issue formally opens.
What happens next? With institutional bidding completed and the cut-off price finalised, Time Pharmaceuticals will now submit its application to the Securities Board of Nepal (SEBON) for final approval to issue shares to the general public. The exact opening and closing dates for the general public application window will be announced only after this regulatory approval is granted.
Why This IPO Matters
Book-building IPOs are still relatively new in Nepal's capital market, and pharmaceutical companies going public through this route are even rarer. For retail investors, this offering is one of the early opportunities to see how market-driven pricing compares with Nepal's traditional fixed Rs 100 IPOs, and how a healthcare manufacturer with over 30 years of operating history is valued by institutional investors.
Frequently Asked Questions
Q1. What price will general public investors pay for Time Pharmaceuticals shares?
General public investors will be able to apply at Rs 450 per share, which is a 10 percent discount to the institutional cut-off price of Rs 500.
Q2. How many shares are reserved for the general public?
Out of the total issue of 10,86,500 shares, 6,51,900 shares (60 percent) are reserved for general public investors, NRN workers, and company staff.
Q3. What is the minimum number of shares I can apply for?
General public applicants must apply for a minimum of 50 units, since this IPO is being issued through the book building method rather than a fixed-price offering.
Q4. Has the general public issue opened yet?
As of this writing, institutional bidding has been completed and the price finalised, but the company still needs final approval from the Securities Board of Nepal (SEBON) before the general public application window opens. Watch for an official announcement with exact dates.
Q5. Who is managing this IPO?
Nabil Investment Banking Limited has been appointed as the Issue Manager responsible for managing the share issuance and sales process.
Disclaimer: This article is for general information purposes only and does not constitute investment advice. IPO details such as opening dates, allocation, and pricing are subject to change until final approval from the Securities Board of Nepal (SEBON). Please verify all details from the official prospectus and SEBON-approved notices before applying, and consult a licensed financial advisor if needed.
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