Reliance Spinning Mills Limited is set to open its Initial Public Offering (IPO) for general investors from Poush 7, 2082.
The company has received approval to issue 19,26,600 shares, equivalent to 10.14 percent of its issued capital of Rs. 1.90 arba. The total IPO size stands at Rs. 19.26 crore.
Reliance Spinning Mills is issuing shares through the book-building method. Earlier, the company had already completed share allotment to qualified institutional investors (QIBs) and Nepalis working abroad. The foreign employment category saw strong demand, with applications exceeding the allocated shares by more than 17 times.
Under the approved structure, 40 percent of the IPO was allocated to institutional investors, while 60 percent is reserved for the public. From the public portion, shares have already been distributed to Nepalis working abroad. After setting aside shares for mutual funds and employees, the company will now issue 9,24,768 shares to the general public.
The IPO price for general investors has been fixed at Rs. 820.80 per share, which is 10 percent lower than the price offered to institutional investors. Applicants can apply for a minimum of 50 shares and a maximum of 20,000 shares.
The issue will close on Poush 11, but if the shares are not fully subscribed, the deadline may be extended until Poush 21.
Global IME Capital Limited has been appointed as the issue manager. Investors can apply through ASBA-approved banks and financial institutions, as well as via the Meroshare online platform.
For the IPO, CARE Ratings Nepal has assigned the company a CARE-NP A- issuer rating, indicating adequate capacity to meet financial obligations.
Reliance Spinning Mills is recognized as Nepal’s largest yarn manufacturing company. More than 70 percent of its products are exported to countries including India, Turkey, Vietnam, and the UK. The company has also received Indian Standard certification for product quality.
According to audited financial statements for FY 2081/82, the company reported an EPS of Rs. 27.87 and a net worth per share of Rs. 250.80, with accumulated profits exceeding Rs. 5.82 arba. Based on unaudited data up to the first quarter of the current fiscal year, accumulated profits have increased to over Rs. 5.89 arba, while EPS stands at Rs. 15.84 and net worth per share at Rs. 254.83.
Reliance Spinning Mills IPO Details and Key Information
| Particulars | Details |
|---|---|
| Company Name | Reliance Spinning Mills Limited |
| IPO Type | Initial Public Offering (IPO) |
| Issue Method | Book Building |
| Issue Manager | Global IME Capital Limited |
| Total IPO Approved | 19,26,600 units |
| Issue Size | Rs. 19 crore 26 lakh 60 thousand |
| Issue Percentage | 10.14% of issued capital |
| Face Value | Rs. 100 per share |
| IPO Price for General Public | Rs. 820.80 per share |
| IPO Price for QIBs | Rs. 912 per share |
| IPO Opening Date (General Public) | Poush 7, 2082 |
| IPO Closing Date (Early) | Poush 11, 2082 |
| IPO Closing Date (Late) | Poush 21, 2082 |
| Minimum Application Quantity | 50 units |
| Maximum Application Quantity | 20,000 units |
| Shares for Foreign Nepalis | 1,15,596 units (Already allotted) |
| Oversubscription (Foreign Nepalis) | More than 17 times |
| Shares for Mutual Funds | 57,798 units |
| Shares for Employees | 57,798 units |
| Shares for General Public | 9,24,768 units |
| Credit Rating | CARE-NP A- (Issuer) |
| EPS (FY 2081/82) | Rs. 27.87 |
| Net Worth Per Share (FY 2081/82) | Rs. 250.80 |
| EPS (Q1 FY 2082/83) | Rs. 15.84 |
| Net Worth Per Share (Q1 FY 2082/83) | Rs. 254.83 |
| Accumulated Profit | Over Rs. 5.82 arba |
| Industry | Textile / Yarn Manufacturing |
| Export Share | 70–75% of total production |
| Major Export Markets | India, Turkey, Vietnam, United Kingdom |
| Quality Certification | Indian Standard Certification |
| Application Method | ASBA member banks and Meroshare |