Reliance Spinning Mills Launches IPO (Dec 22)

Reliance Spinning Mills Limited officially opened its Initial Public Offering (IPO) today, offering shares to the general public under the book-building system. The company has allocated a total of 924,768 shares for this issuance after setting aside 57,798 shares specifically for its employees. This move follows the successful completion of the institutional bidding phase of the offering process.

The share price for the public issuance has been set at 820.80 rupees per unit. This price was determined based on the cutoff price of 912 rupees established during the bidding process for institutional investors. According to the Book Building Guidelines 2077, the general public is entitled to a 10 percent discount from that institutional cutoff price, resulting in the final adjusted rate.

Interested investors are required to apply for a minimum of 50 shares, which necessitates a total initial investment of 41,040 rupees. The maximum application limit has been set at 20,000 shares per individual. The subscription period is scheduled to remain open until December 26, 2024, though it may be extended until January 5, 2025, if the offering is not fully subscribed within the initial timeframe.

Applications can be submitted through the C-ASBA system using the Mero Share online platform or by visiting any branch of banks and financial institutions approved by the Securities Board of Nepal (SEBON). Global IME Capital Limited has been appointed as the issue and sales manager to oversee the entire distribution and allotment process for the company.

Care Ratings Nepal has assigned a Care-NP Single A Minus rating to the company for this issuance. This rating indicates that Reliance Spinning Mills possesses adequate capacity to meet its financial obligations in a timely and secure manner. The company’s strong financial profile is expected to attract significant interest from both retail and seasoned investors in the secondary market.