SEBON Puts Reliance Spinning Mills IPO on Temporary Hold
July 11, 2024 | Investopaper
Securities Board of Nepal (SEBON) has put a temporary hold on Reliance Spinning Mills’ public share issuance via the book-building process. This action was taken after the Public Accounts Committee requested details on the company’s share issuance, giving SEBON a seven-day window to provide the information. Consequently, SEBON opted to suspend the share issuance for the time being.
After issuing the shares to the institutional investors through the book-building process, Reliance Spinning Mills Limited was set to float the shares to the public (IPO). In the first phase of the IPO, the company was going to sell the 1,15,596 shares (10 percent of the general public quota) to the foreign employed Nepalis from Ashad 27, 2081 BS. The first phase of the IPO would remain open until Shrawan 10, 2081 BS.
The price for each shares is Rs. 820.80. One can apply for a minimum of 50 units and a maximum of 20,000 units.
After the first phase, the company will float shares to the general public, including the employees of the company and the mutual fund schemes, in the second phase of the IPO.
For this purpose, Securities Board of Nepal (SEBON) has granted permission to the company. The company had submitted the application to the board on Magh 23, 2080 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
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In total (including the first and second phase), the company is planning to issue 11,55,960 shares at a price of Rs. 820.80. Hence, the total public issue amounts to Rs. 94.88 crores
The company has appointed Global IME Capital as an issue and sales manager for the IPO.
Earlier, Reliance Spinning Mills had auctioned 770,640 lakh shares to the qualified institutional investors from Magh 10, 2080 BS to Magh 14,2080 BS.
About Reliance Spinning Mills Limited
Reliance Spinning Mills is the largest spinning mill of Nepal. Established in 1994 (2051 BS), the company has two factories. It is promoted by Golyan Group in joint venture with Maliram Shivkumar (MS) Group.
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