SEBON Approves Reliance Spinning Mills IPO For General Public: Key Details

The Securities Exchange Board of Nepal (SEBON) has approved Reliance Spinning Mills Limited’s request to launch an Initial Public Offering (IPO) to the general public.

The IPO will be launched via the book-building method.�The company will issue 1,155,960 shares to the general public at a 10% discount. A minimum of 50 units is required to apply, as the IPO price is NPR 820.80 per unit of share costing around Rs. 41,040.�This is the second IPO in Nepal to use the book-building approach, after Sarbottam Cement Limited IPO.

Now the company is issuing 60% of the company’s shares to the general public estimated to collect Rs 94.88 crores.

Reliance Spinning Mills IPO Date will be announced shortly. The distribution will take place in two phases:

• In the first phase, shares will be distributed to Nepali citizens employed abroad
• The second phase will distribute shares to the general public, company employees, and mutual fund schemes.

Reliance Spinning Mills has already distributed 770,640 shares to Qualified Institutional Investors (QIIs) at a cut-off price of Rs 912 per share, from 10th Magh to 14th Magh in the previous year, which was approved on Poush 19, 2080, and the allotment was completed on Magh 15, 2080.

Details About The Reliance Spinning Mills

Reliance Spinning Mills, established in 2051 B.S., employs over 4,300 people and produces polyester, viscous, and acrylic yarn, mainly exported to India and Turkey.�The company operates two manufacturing units in Khanar and Duhabi, Sunsari, with a total annual capacity of 40,680 MT as of mid-July 2021.�

You may also like:

• Kathmandu Metropolitan City Announces Rs 25.70 Billion Budget for FY 2081/82
• Finance Minister Addresses Share Market Concerns; New Monetary Policy in Development
• Municipal Budgets for 2081/82: Lalitpur, Bharatpur, Bhaktapur, and Nepalgunj