Reliance Spinning Mills' Public Share Issuance Temporarily Halted by SEBON

The Securities Board of Nepal (SEBON) has temporarily suspended the public issuance of shares by Reliance Spinning Mills through the book-building method.

This decision followed a letter from the Public Accounts Committee requesting information about the company's share issuance within seven days. In response, SEBON decided to halt the issuance temporarily.

Reliance Spinning Mills Limited had announced the IPO issuance starting from Ashad 27. The company intended to issue shares to Nepalese citizens working abroad, having obtained labor approval from the relevant government authorities.

Reliance Spinning Mills was set to issue 10.14% of its issued capital of Rs 1.90 Arba, totaling 19,26,600 shares. Of these, 40% (7,70,640 shares) had already been issued and allotted to Qualified Institutional Investors (QIIs), while the remaining 60% (11,55,960 shares) were reserved for the general public. Out of the general public allocation, 10% (1,15,596 shares) were to be issued to Nepalese citizens working abroad. The remaining 10,40,364 shares were to be issued to the general public.

The share price for common investors was set at Rs. 820.80 per share. During the primary share allotment to QIIs, the cutoff price for Reliance Spinning Mills was set at Rs 912. According to guidelines, shares are made available to the general public at a rate 10% lower than the cutoff price, resulting in the Rs 820.80 per share price for common investors.

Read More: Reliance Spinning Mills Accused of Manipulating Financials to Inflate IPO Prices