Reliance Spinning Mills Limited Concludes IPO Allotment for Nepalese Citizens Working Abroad; 2,311 Applicants Receive 50 Units, 46 Get One Unit Each via Lottery

The IPO allotment for Nepalese citizens working abroad by Reliance Spinning Mills Limited was concluded today, 1st Poush, 2082.

The company had already issued and allotted 115,596 units, which were for Nepalese citizens working abroad from 22nd Mangsir to 25th Mangsir 2082. Thus, the remaining 11,55,960 units are for the general public. Out of the total 11,55,960 units, 1,15,596 units are allotted for mutual funds, while 57,798 units have been set aside for the company's employees. The remaining 9,24,768 units are for the general public.

The issue received a total of 35,102 valid applications for 19,44,330 units.

As per the allotment module, 2,311 applicants were allotted 50 units each, and 46 applicants received 1 unit each through a lottery for Nepalese citizens working abroad.

Allotment Module:

The IPO result can be accessed by  CDSC IPO Result,  MeroShare, and Global IME Capital Limited.

Global IME Capital has been appointed as the issue manager. Applications can be placed for a minimum of 50 units, with a maximum quantity of 20,000.

The share price of the company is Rs. 820.80 per share for common investors. The company is issuing an IPO through the book-building method.

Generally, the 'cut-off price' plays a pivotal role in IPOs issued under the book-building process. During the primary shares allotment to the qualified institutional investors, the 'cutoff price' for Reliance Spinning Mills was set at Rs 912. Following the guidelines, shares are made available to the general public at a reduced rate, specifically 10% lower than the 'cut-off' price. For Reliance Spinning Mills, this translates to Rs 820.80 per share for common investors.

After Sarbottam Cement Limited, this will be the 2nd company to issue an IPO under the book-building method in Nepal.

CARE Ratings Nepal Limited (CRNL) has continued to keep Reliance Spinning Mills Limited (RSML) under credit watch with developing implications. The company’s issuer rating of CARE-NP A- (Is), indicating adequate safety and low credit risk, remains unchanged. Similarly, CRNL has also maintained the same credit watch status for RSML’s long-term rating (CARE-NP A-) and short-term rating (CARE-NP A2+) for its bank facilities.

Reliance Spinning Mills Pvt. Ltd. was registered with the company registrar in the year 2051 B.S. With 4,300+ employees, Reliance Spinning Mills is the biggest of its kind in the country. The company manufactures Polyester, Viscous, and Acrylic yarn of international standard that is then exported worldwide, primarily to India and Turkey. The company has two manufacturing units located at Khanar, Sunsari, and Duhabi, Sunsari, Nepal. The total installed manufacturing capacity of the company is 40,680 MT per year as of mid-July 2021.