Reliance Spinning IPO opens for foreign-employed Nepalis, Emerging as a blue-chip company on NEPSE

KATHMANDU: Reliance Spinning Mills Limited has opened the issuance and sale of its Initial Public Offering (IPO) from today, marking a significant milestone for Nepal’s capital market and the country’s textile and manufacturing sector. The IPO has been opened specifically for Nepalis working abroad, reinforcing the growing role of foreign-employed citizens in domestic investment and wealth creation.

Out of the total 1,155,960 shares allocated for the general public, the company has set aside 10 percent, or 115,596 shares, exclusively for Nepalis engaged in foreign employment. This provision is in line with Nepal’s inclusive capital market policy, aimed at enabling migrant workers to participate directly in the country’s industrial and financial growth.

Reliance Spinning Mills had earlier allocated 770,640 shares to eligible institutional investors through the book-building process, as per the Book Building Directive 2077. Based on bids received from these institutional investors, the cut-off price was fixed at Rs 912 per share. In accordance with Clause 14 of the same directive, a 10 percent discount has been applied to the cut-off price for the general public. Accordingly, the IPO price for foreign-employed Nepalis and general investors has been set at Rs 820.80 per share.

Investors applying for the IPO can submit applications for a minimum of 50 shares and a maximum of 50,000 shares. For the minimum application size, investors are required to commit Rs 41,040. Those applying for the maximum allowable shares must arrange Rs 16.41 million, reflecting the premium valuation and strong fundamentals of the company.

The IPO application period will remain open until Mangsir 25. If the issue is not fully subscribed within this timeframe, the deadline will be extended until Poush 7. The issue is being managed by Global IME Capital Limited, one of Nepal’s leading merchant bankers. Applications can be submitted through banks and financial institutions or digitally via the ‘Mero Share’ platform operated by CDS and Clearing Limited.

Market analysts view Reliance Spinning Mills as one of the most promising manufacturing companies entering the Nepal Stock Exchange (NEPSE) through the book-building route. Backed by strong promoters, modern production facilities, and a focus on value-added textile products, the company is increasingly being described as an emerging blue-chip company among NEPSE-listed firms. Its scale of operations, export-oriented business model, and relatively stable revenue outlook have positioned it favorably compared to many existing manufacturing stocks on the exchange.

The listing of Reliance Spinning Mills is also expected to deepen the industrial segment of NEPSE, which has long been dominated by banking and hydropower stocks. With investors showing growing interest in fundamentally strong manufacturing and export-driven companies, the firm’s IPO is being closely watched by both retail and institutional players.

As Nepal seeks to strengthen domestic manufacturing, reduce import dependency, and boost exports, companies like Reliance Spinning Mills are increasingly seen as critical to the country’s long-term economic transformation. Its IPO not only offers an investment opportunity but also signals the gradual emergence of strong, blue-chip industrial companies in Nepal’s stock market.