Reliance Spinning Mills Launches IPO through Book Building for Qualified Institutional Investors From Today
Wed, Jan 24, 2024 9:10 AM on IPO/FPO News, Latest,
Reliance Spinning Mills is opening its Initial Public Offering (IPO) through a process called book building to Qualified Institution Investors (QIIs) from today i.e. on 10th Magh.
The company plans to issue 7,70,640 unit shares to Qualified Institution Investors (QIIs) in this initial phase. From today Reliance Spinning Mills will offer these shares exclusively to QIIs, closing the IPO on the 14th of Magh, 2080. The company has invited QIIs to participate in the bidding process during this specified timeframe.
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 will be issued to Qualified Institutional Investors from 10th Magh.
As per the preliminary bid submitted by the QIB, the minimum price stood at Rs 608 per share. Based on this, the base price stood at Rs 760 per share. However, the company can issue shares up to 20% higher than the base price i.e. Rs 912 per share to the QIB. And whatever, the minimum cut-off rate by QIB would be, the general public will get a 10% discount price from the company.
In cases where investors bid above the base price but do not receive shares, there will be a three-day window to refund the excess amount with interest or make necessary account adjustments.
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.
