RSML Draws Stronger Investor Interest Despite Minor Fall on Monday

Reliance Spinning Mills Limited (RSML) recorded a minor fall on Monday despite the Nepal Stock Exchange (NEPSE) index surging by 6%, prompting the final (third) circuit breakers and leading to a permanent halt in trading for the day.

RSML dropped 10.20 points (1.49%) to close at Rs 675.30 per unit with the trading of only 10 units during the session.

The company’s shares were closed at Rs 685.50 per unit during the previous trading day of March 3.

Despite the minor dip, the stock has demonstrated early momentum since its market debut.

The company’s shares started trading on February 16 and hit nine consecutive positive circuits before the minor decline.

There was a delay of over one month in listing the company’s shares on NEPSE due to procedural issues. 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.

The company issued initial public offering (IPO) to the public under the book-building method. As per the system, the IPO price for the general public was fixed at Rs 820.80 per unit. Based on this price, the share must hit over 10  positive circuits to get to a breakeven level.

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.