Reliance Spinning Mills IPO Opens for General Public from Poush 7

The initial public offering (IPO) of Reliance Spinning Mills will open for the general public from Poush 7. The IPO is being issued for the public after it was already offered to Nepalis working abroad.

Out of the total 1,155,960 shares allocated for the public group, shares have been set aside for foreign-employed Nepalis, mutual funds, and company employees. The remaining 924,768 shares will be available for the general public.

General investors can apply for a minimum of 50 shares and a maximum of 20,000 shares. Under the book-building method, the IPO price for the public has been fixed at Rs 820.80 per share. An individual needs at least Rs 41,040 to apply for the minimum number of shares.

This is the second company in Nepal to issue an IPO using the book-building method. Earlier, Shivam Cement had also issued its IPO through this method.

The issue manager for the IPO is Global IME Capital. The IPO process had earlier stopped after a case was filed against the company at the High Court. After the court gave a verdict in favor of Reliance Spinning Mills, the IPO process has now resumed.

About the Company

Reliance Spinning Mills has received an A-minus rating from Care Ratings Nepal, showing that the company has a strong ability to meet its financial obligations.

Established in 1997 (2054 BS), Reliance Spinning Mills is one of the country’s leading textile companies. It produces cotton, polyester, viscose, acrylic, and textured yarn.

The company started with a capacity of 9,000 spindles and has now expanded to 102,824 spindles. It operates two yarn factories in Khanar and Duhabi of Sunsari district.

Led by young entrepreneur Akshay Golyan, the company has built a strong presence in both domestic and international markets. Its products are sold in Nepal and exported to countries including India and Turkey, with annual exports worth around USD 50 million.

According to the audited financial report released in early Mangsir, the company earned a total profit of Rs 1.48 billion in the fiscal year 2081/82, up from Rs 865 million in the previous year.

In the last fiscal year, the company’s net profit stood at Rs 475.8 million, compared to Rs 50.3 million in the previous fiscal year.