Reliance Spinning Mills IPO 2082: Should Investors Apply at Rs. 820.80?

Reliance

 Spinning Mills Limited is launching its IPO for the general public from 7th to 11th Poush, 2082, with a possible extension until 21st Poush if the issue is not fully subscribed. A total of 9,24,768 shares are available for public investors under this offering.

Earlier, 1,15,596 shares were already allotted to Nepali citizens working abroad. From the remaining shares, allocations have also been made for mutual funds and company employees, while the balance is offered to the general public. The IPO is managed by Global IME Capital, and investors can apply for a minimum of 50 shares and a maximum of 20,000 shares.

The company is issuing shares through the book-building method, where the cut-off price was fixed at Rs. 912 during institutional allotment. As per regulations, public investors can apply at a 10% discounted price of Rs. 820.80 per share. This marks only the second IPO in Nepal to be issued under the book-building process, after Sarbottam Cement Limited.

In terms of financial credibility, CARE Ratings Nepal has maintained Reliance Spinning Mills’ rating at CARE-NP A-, indicating adequate safety and low credit risk, while keeping the company under credit watch with developing implications.

Established in 2051 B.S., Reliance Spinning Mills is Nepal’s largest spinning company, employing over 4,300 people. It produces high-quality polyester, viscose, and acrylic yarn, mainly for export to India and Turkey. The company operates two manufacturing plants in Khanar and Duhabi, Sunsari, with a total installed capacity of 40,680 metric tons per year, reflecting its strong presence in Nepal’s industrial sector.