Reliance Spinning Mills’ share listing in limbo: Investors hit hard

Investors have been hit the hardest due to the delay in listing the shares of Reliance Spinning Mills' IPO on the Nepal Stock Exchange (NEPSE). As a result, over Rs 1 arba 74 crore and 65 lakh collected through the company’s initial public offering (IPO) remains effectively locked in.  

Investors have expressed concern about the prolonged delay. "I have invested my hard-earned money in the company. But, my money has been stuck for over a month as the shares are yet to be listed," said Tara Bastola, one of the investors.

The company issued IPO to Nepali migrant workers abroad from December 8-11, 2025 and to the general public from December 22-26, 2025. The company offered the issue through the book building method.

As per the Securities Board of Nepal (SEBON) book building guidelines, the company had fixed the cut-off price of Rs 912 per share from qualified institutional investors, and the issue was offered to the general public at 10% below the cut-off price being at Rs 820.80 per share.

Of its total paid up capital of around Rs 1.90 arba, the company offered 10.14% of IPO (19,26,600 shares) to the public. Of the offered units, as per the guidelines, 40% (770,640 units) were reserved for qualified institutional investors, and 60% (12,71,556 units) were allocated to the general public, including 115,596 shares set aside for Nepali migrant workers abroad.

Investors showed encouraging interest in the company as the IPO was oversubscribed by over 30 times.

Under the general public quota, a total of 532,888 applications were placed, seeking a total of 27,215,100 shares. The total applied amount was more than Rs 22 arba. Some reports suggest that the applied amount reached Rs 25 arba. Under the Nepali migrant quota, 35,102 applications were placed, seeking the total 1,944,330 shares  for the total 115,596 units. The total applied amount reached Rs 1.59 arba.

Murahari Parajuli, Information Officer at NEPSE said that the issues regarding the listing were resolved, and the process would begin soon, possibly by coming Monday or Tuesday.

According to current practices under the Securities Listing Bylaws, 2075, newly public companies are required to list their shares on NEPSE within a few weeks of IPO allotment.

However, it has been over one month since the allotment of Reliance Spinning Mills.

Parajuli explained that the opening price range of a company is determined based on its net worth per share. According to the company’s quarter two financial report for the current 2082/83,  Reliance Spinning Mills has a net worth per share of Rs 490.54. At the time its financial performance was approved for the issuance of the IPO, the company's net worth per share was approximately Rs 250.80, meaning its opening price range on NEPSE could be between Rs 250.80 and Rs 752.40. 

Stock market analyst Ramhari Nepal viewed that there was a lack of proper coordination between SEBON and the Nepal Electricity Authority, resulting in the current issues surrounding the listing of the company. “Investors have largely hit due to the delay.”

According to him, the current issue has to some extent discouraged fundamentally sound companies to issue units through the book building method.

Reliance Spinning Mills is the second one to issue IPO through the book building method behind Sarbottam Cement.

Through the IPO, the company raised over Rs 1 arba 74 crore and 65 lakh, reflecting strong investor interest despite the ongoing delay.