Reliance Spinning Mills Issuing IPO Shares to Foreign Nepalese Immigrants from Ashadh 27

Wed, Jul 3, 2024 7:05 AM on IPO/FPO News, Latest,

Reliance Spinning Mills has published an offer letter to issue an Initial Public Offering (IPO) to the Foreign Nepalese Immigrants.

The IPO issue for the Foreign Nepalese Immigrants from 27th Ashadh to 10th Shrawan, 2081. Note that, the issue will not be extended from the early closing date for Foreign Nepalese Immigrants.

Earlier, as per the guidelines, the company had issued its primary shares through the book-building process to the Qualified Institutional Investors (QII) from 10th Magh - 14th Magh, 2080. The allotment of which happened on 15th Magh.

In total Reliance Spinning Mills is to issue 10.14% of its issued capital of Rs 1.90 Arba, i.e. a total of 19,26,600 shares. Out of which 40% i.e. 7,70,640 shares were already issued and allotted to the Qualified Institutional Investors (QIIs), while the remaining 60% i.e. 11,55,960 shares are for the general public.

From the total of 11,55,960 units, 10% of the shares totaling 1,15,596 units shares will be issued to Nepalese citizens working abroad. Later on, the remaining 10,40,364 units will be issued to the general public.

Global IME Capital is appointed as the issue manager. Applications can be placed for a minimum of 50 units while the maximum quantity is 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.

In general the 'cut-off price' serves as a pivotal factor in the IPO 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.

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, 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.

Offer Letter: