Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Reliance Spinning Mills Ltd. is set to open the issuance and sale of its Initial Public Offering (IPO) to the general public from December 23. The company is moving ahead with the public offering after completing share allocation to Nepalis working abroad.
The company will issue a total of 1,155,960 shares to general investors. Of this, 5 percent or 57,758 shares have already been allocated to mutual funds, while 10 percent or 115,556 shares were issued and pre-allotted to Nepalis employed overseas. Another 5 percent, equivalent to 57,788 shares, has been reserved for employees. The remaining 924,768 shares will be offered to the general public.
Although the face value of the shares remains Rs 100 per unit, the IPO has been priced under the book-building method. The cut-off price for qualified institutional investors was fixed at Rs 912 per share. For general public investors, a 10 percent discount has been applied, setting the IPO price at Rs 820.80 per share.
Investors may apply for a minimum of 50 shares and a maximum of 20,000 shares. Applications for the minimum allotment will require an investment of Rs 41,040, while applying for the maximum allotment would require Rs 16.41 million.
The application period will remain open until December 27. If the issue is not fully subscribed within this period, the deadline will be extended until January 5.
Global IME Capital has been appointed as the issue and sales manager for the IPO. Interested investors can apply through banks and financial institutions as well as via the “Mero Share” online application system operated by CDS and Clearing Limited.
Your email address will not be published. Required fields are marked *
Comment *
Name *
Email *
Website
Save my name, email, and website in this browser for the next time I comment.
