Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Reliance Spinning Mills has announced that it will seek legal remedies against what it calls a coordinated campaign of misinformation aimed at defaming the company and intimidating its investors. In a statement issued on Thursday, the country’s largest yarn manufacturer said an “organized group of collectors disguised as activists” has been spreading fabricated allegations to blackmail regulators and create panic among investors.
According to the company, it has identified individuals and online portals responsible for what it describes as “financial terror” and “criminal defamation.” Reliance stated that legal action has already been initiated with relevant state authorities.
“These accusations are entirely false, malicious, and deliberately manufactured to manipulate the stock market for personal gain,” the company said. It added that a character assassination campaign intensified only after the Supreme Court refused to register what it called a baseless petition filed against the company. “After failing in court, the group resorted to spreading blatant lies,” the statement reads.
Reliance Spinning Mills emphasized that its 4,000 employees and over 20,000 investors stand firmly against such blackmail and coercive tactics. The company has urged responsible media outlets to refrain from circulating unverified, defamatory claims and to adhere to established journalistic standards.
The controversy surfaced after the Securities Board of Nepal (SEBON) permitted the stalled IPO issuance process to move forward, acting on an order from the Patan High Court. Reliance said a wave of misleading reports began circulating immediately after SEBON’s approval, though it stressed that such noise would not affect investor confidence.
The company’s IPO for Nepali migrant workers—115,596 shares—was opened earlier this week and saw overwhelming demand. On the first day alone, the issue was oversubscribed by 5.1 times, receiving applications for 589,850 shares.
Reliance Spinning Mills’ share price stands at Rs 820.80 per unit, determined under the book-building system after institutional investors bid at a cutoff price of Rs 912. The final price reflects a 10 percent discount applicable under regulatory guidelines.
Investors may apply for a minimum of 50 shares and a maximum of 20,000 shares. Global IME Capital Limited is serving as the issue and sales manager.
The company reiterated that no amount of “manufactured controversy” will derail its capital-market plans or its long-term operations.
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