Reliance Spinning Mills Limited Issuing 9,24,768 Unit IPO Shares To General Public From Poush 7

Reliance Spinning Mills Limited is opening the issue of its 9,24,768 unit IPO shares from 7th Poush, 2082. The early closing date of this issue is on the 11th Poush, and if the issue is not fully subscribed, it can be extended up to the 21st Poush, 2082.

Earlier, 1,15,596 units had already been issued and allotted to Nepalese citizens working abroad. 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.

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.

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