Reliance Spinning Mills Opens IPO for Nepalese Working Abroad from Today
Reliance Spinning Mills has opened its IPO for Nepalese employed abroad, offering 115,596 shares at Rs. 820.80 per unit under the book-building framework.
Reliance Spinning Mills Limited has opened its Initial Public Offering (IPO) for Nepalese citizens working abroad, with applications beginning today, Mangsir 22. The issuance is specifically targeted at migrants who have obtained official labor permits from the Government of Nepal.
The company is offering 115,596 units, representing 10% of the public issue, at a price of Rs. 820.80 per share. While the stock carries a face value of Rs. 100, the final price was determined under the book-building methodology.
During the earlier QII bidding process, conducted under the Book Building Directive 2077, institutional investors were allotted 770,640 units at a cut-off price of Rs. 912. In line with the rules, retail applicants receive a 10% discount on the cut-off, resulting in the final price of Rs. 820.80.
Applicants must apply for at least 50 shares, with a maximum limit of 20,000 shares.
The IPO closes on Mangsir 25, but may be extended to Poush 7 if not fully subscribed.
Global IME Capital Limited is serving as the issue manager. Investors can apply through all ASBA-approved banks and financial institutions or via the Mero Share online portal.
CARE Ratings Nepal has assigned Reliance Spinning Mills a CARE-NP A- Issuer Rating, indicating adequate safety and a low level of credit risk.
The company is Nepal’s largest employer in the yarn manufacturing sector, exporting 70–75% of its polyester, viscose, and acrylic yarn to markets including India, Turkey, Vietnam, and the UK. Reliance Spinning Mills operates two production plants:
Unit A located in Khanar, Itahari-12, Sunsari
Unit B located in Duhabi, Itahari-4, Sunsari
The company’s simple payback period stands at 6.75 years, while the discounted payback period is 10.61 years, reflecting stable long-term cash flow expectations.