The IPO issuance of Reliance Spinning Mills for Nepali citizens working abroad, scheduled from Ashar 27 to Shrawan 10, has been suspended by SEBON today, on Ashar 26.
The Public Accounts Committee sent a letter asking for information about the company’s share issuance within seven days because Reliance Spinning Mills has been accused of submitting false financial statements to raise their IPO share prices higher. As a result, SEBON chose to temporarily stop the issue.
Reliance Spinning Mills was set to issue an IPO through the book-building method. The share price was set at Rs 820.80 per share for the general public, which is 10% lower than the cutoff price.
The company planned to issue 1,15,596 shares to Nepalese citizens working abroad which is 10% of the 11,55,960 shares separated for the general public. The remaining 10,40,364 shares were separated to be issued to the general public in Nepal shortly.
The Company initially separated 10.14% of its total shares (19,26,600 shares), equivalent to 1.90 Arba rupees. Out of these, 40% (7,70,640 shares) were given to Qualified Institutional Investors (QIIs), and 60% (11,55,960 shares) were meant for the general public.
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