Reliance Spinning Mills Gets Approval From SEBON To Conduct Road Show To Float IPO Under Book Building Method

Reliance Spinning Mills Limited (RSM) has released a circular regarding the roadshow for the company being approved by the Securities Exchange Board of Nepal (SEBON) to act as Qualified Institutional Investors (QIB) for the public issue of securities under the Book building* method.  The company has proposed to issue an IPO for 19,26,600 shares through this method.

Global IME Capital Limited has been appointment as the issue manager of this IPO. 

*Book building is the process by which an underwriter attempts to determine the price at which an initial public offering (IPO) will be offered. An underwriter, normally an investment bank, builds a book by inviting institutional investors (such as fund managers and others) to submit bids for the number of shares and the price(s) they would be willing to pay for them. While 40% of the shares will be sold to institutional investors, 60% will be issued to the general public.

What is a Roadshow?

A roadshow is a series of presentations made in various locations leading up to an initial public offering. The underwriting company and the top management team of a company make a sales pitch to potential investors during the roadshow.

The roadshow is crucial to the IPO because it offers a platform where the company may speak with potential investors directly and address any issues or highlight achievements. In order to finish the book-building process, which entails gathering the prices prospective investors are ready to pay for the offering, the underwriters also use the data obtained from investors.

Date, time, and place of the discussion program:

A discussion program will be conducted on the following date, time, and place for the purpose of obtaining the minimum number of securities that the investors want to purchase if suggested in the initial statement including the intended price and method of valuation.

Date: 23 Ashad, 2079

Time: 3:15 p.m

Place: Hyatt Palace, Soltimode, Kathmandu

All the related documents and details to be made available regarding the program are available on the official website of RSM – www.reliancespinningnepal.com and the Issuer and sales manager- Global IME Capital Limited’s official website.

Previously, Sarbottam Cement Limited (SCML) also got an approval from SEBON to conduct roadshow to issue IPO through Book Building Method. The company is set to issue 60 lakh shares through this method. The Roadshow of SCML is scheduled for 19th Asad, 2079.

About the company:

Reliance Spinning Mills Pvt. Ltd. was registered in 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, 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 on mid-July 2021.

RSM has an operational track record of around 25 years in yarn manufacturing industry. RSML is a joint venture of two leading business houses of Nepal namely Golyan Group and MS Group. The company is promoted by Mr. Pawan Kumar Golyan, Chairman of the Golyan Group and Mr. Shashi Kant Agarwal, Managing Director of MS Group. The company is managed under the overall guidance of its three members Board of Directors (BoD) who possess wide experience in the related field. Mr. Pawan Kumar Golyan, is the Chairman of the company and is also the President of Nepal Yarn Manufacturing Association. He is also Chairman of Confederation of Banks and Financial Institutions Nepal and member of Industry and Investment Promotion Board under Department of Industry. Mr. Shashi Kant Agarwal, Vice Chairman in RSML has 30 years of experience in Trade and Industry. Mr. Agarwal is President of Nepal Sugar Mills Association and Executive Member of Nepal India Chamber of Commerce of Industry. Mr. Akshay Golyan, Managing Director, has around 6 years of experience in manufacturing and real estate sector.

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