First Business News Portal in English from Nepal
KATHMANDU: Reliance Spinning Mills Pvt. Ltd. has proposed to issue an initial Public Offering (IPO) for 14,60,000 shares via the book building method through Global IME Capital as its issue manager.
An agreement to this effect was reached between Sashikanta Agrawal on behalf of Reliance Spinning Mills and Paras Mani Dhakal on behalf of Global IME Capital.
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, Acrylic yarn of international standard that is then exported worldwide, primarily to India and Turkey.
Out of total issues, the company will float 40 percent shares to eligible institutional investors while remaining shares will be floated to the public via the book building method.
What is a Book Building in IPO?
Book Building is basically a process used in IPO for efficient price discovery. It is a mechanism where, during the period for which the IPO is open, bids are collected from investors at various prices, which are above or equal to the floor price.
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