Reliance Spinning Mills to Open IPO for General Public from Poush 7

Reliance Spinning Mills Limited is set to open its initial public offering (IPO) for general investors from Poush 7, following the completion of share allocation to Nepali citizens working abroad.

The company will issue a total of 960,566 ordinary shares, of which 57,798 shares have been reserved for employees. The remaining 902,768 shares will be offered to the public. While the face value of each share is Rs 100, investors will be required to apply at Rs 820.80 per share under the book-building system.

In accordance with the Book Building Directive 2077, 770,640 shares were earlier allocated to eligible institutional investors through a bidding process. The cut-off price was fixed at Rs 912, and the public issue price was set at Rs 820.80 after applying a 10 per cent discount.

General investors can apply for a minimum of 50 shares and a maximum of 20,000 shares. The issue is scheduled to close early on Poush 11, although the deadline will be extended until Poush 21 if the offering is not fully subscribed.

Global IME Capital Limited has been appointed as the issue and sales manager. Applications can be submitted through all ASBA member banks and financial institutions approved by the Securities Board of Nepal, as well as via the Mero Share online platform operated by CDS and Clearing Limited.

Care Ratings Nepal has assigned Reliance Spinning Mills a Care NP Single A Minus rating, indicating an adequate capacity to meet its financial obligations in a timely manner.

Reliance Spinning Mills is one of the largest employers in Nepal’s yarn manufacturing sector, exporting around 70 to 75 per cent of its production to international markets, including India, Turkey, Vietnam, and the United Kingdom. The company is chaired by Pawan Kumar Golyan, with Akshay Golyan serving as managing director. Its main production facility is located in Itahari Sub-Metropolitan City–12, Khanar, Sunsari, with a branch plant in Itahari Sub-Metropolitan City–4, Duhabi.

According to company data, the simple payback period stands at 6.75 years, while the discounted payback period is estimated at 10.61 years.