Reliance Spinning Mills Book Building Process: Tentative Cut-off Price of QII Stands Rs 912 Per Share, General Public IPO Price At Rs. 820.80


The IPO of Reliance Spinning Mills has opened a bid for Qualified Institutional Investors (QII) at the premises of the Nepal Stock Exchange (NEPSE).

During the initial phase, the company offered its IPO to eligible institutional investors through the book-building process from 10th Magh to 14th Magh. A total of 64 eligible institutional investors sought this opportunity.

According to the issue manager, 18 companies submitted bids at the highest price of Rs. 912 per share. The cut-off price is fixed at the upper point. Individuals applying at this price will receive shares proportionate to their application. Applicants at Rs.912 will be allocated only 65.72 percent of the requested shares. Those applying for more than Rs.912 will receive the requested number of shares. The majority of bids were placed at a cut-off of Rs. 912.

The company issued 7,70,640 unit shares to Qualified Institution Investors (QIIs) in this initial phase. Qualified institutional investors were permitted to apply within a specified price range of Rs. 608 to Rs. 912 per share, and those who had already submitted a target price were restricted from applying at a lower price than their stated target. The cut-off price should stand at Rs. 912, and the shares for the general public will be available at Rs. 820.80 (10% discount on cut-off rate).

The issued capital of the company is Rs. 1.90 Arba of which 10.14% i.e. 19,26,600 unit shares will be issued to the public (Qualified Institution Investors (QIIs) and the general public). Out of this total issue, 40% i.e. 7,70,640 shares were issued to Qualified Institutional Investors.

Global IME Capital has been appointed as the issue manager.

After Sarbottam Cement Limited, this will be the 2nd company to issue an IPO under the book-building method in Nepal.

Reliance Spinning Mills Pvt. Ltd. was registered in the company registrar in the year 2051 B.S. With 4,300+ employees, Reliance Spinning Mills is the biggest of its kind in the country. The company manufactures Polyester, Viscous, and Acrylic yarn of international standard that is then exported worldwide, primarily to India and Turkey. The company has two manufacturing units located at Khanar, Sunsari, and Duhabi, Sunsari, Nepal. The total installed manufacturing capacity of the company is 40,680 MT per year as of mid-July 2021.

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