Kathmandu, December 2 — The IPO process of Reliance Spinning Mills Limited has officially moved forward again after being paused for nearly 17 months. Nepal Securities Board sent a written order on 16 Mangsir 2082 B.S. to the issue manager, Global IME Capital Limited, allowing it to resume the IPO steps.
The IPO was earlier blocked because of legal complaints. A case had been filed on 25 Asar 2081 B.S. at High Court Patan by 4 applicants including Hari Bahadur KC. The court dismissed the case on 21 Kartik 2081 B.S., which cleared the path for the IPO.
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Before the public offering phase, the company had already completed a book-building auction for qualified institutional investors. The auction approval had been granted on 19 Poush 2080 B.S.. Bidding opened from 10–14 Magh 2080 B.S. and shares were allotted on 15 Magh 2080 B.S. at a final auction price of Rs. 912 per unit. A total of 7,70,640 units were distributed to institutional bidders.
Nepal Securities Board had also approved 11,55,960 public units on 12 Asar 2081 B.S., but ordered a halt to the IPO the next day because financial reports and ownership details were questioned. On 27 Asar 2081 B.S., the company had even planned to open 1,15,596 units for Nepalese workers abroad, but the issue was stopped one day before launch.
The company has permission to issue 19,26,600 total IPO units, which equals 19 crore 26 lakh 60 thousand NPR, making up 10.14% of its issued capital (Rs. 1 Arba 90 crore). The company had already received general IPO approval and also finalized institutional allotments before the process stopped.
Reliance Spinning Mills has not yet released its latest quarterly financial report for this year. Until the fourth quarter of 2081 B.S., the company recorded a major profit jump of 845%, showing fast growth in income. Operating income reached Rs. 10 Arba 23 crore, higher than Rs. 9 Arba 20 crore in the previous year. Operating profit increased from Rs. 57 crore 27 lakh to Rs. 1 Arba 3 crore after income grew.
Reliance Spinning Mills IPO Offering Summary
Reliance Spinning Mills IPO Key Facts
| Detail | Information |
|---|---|
| IPO Method | Book-building + public issue |
| Auction Price (Institutional) | Rs. 912 per unit |
| Institutional Allotted | 7,70,640 units |
| Total IPO Units Approved | 19,26,600 units |
| IPO Size | 19 crore 26 lakh 60 thousand NPR |
| Issued Capital | Rs. 1 Arba 90 crore |
| IPO % of Issued Capital | 10.14% |
| Court Case | Filed 25 Asar 2081, dismissed 21 Kartik 2081 |
| IPO Resume Order | 16 Mangsir 2082 B.S. |
| Issue Manager | Global IME Capital |