Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: The initial public offering (IPO) of Reliance Spinning Mills Limited was allotted on Friday through a lottery-based process, with only a small fraction of applicants securing shares amid overwhelming demand.
According to the issue manager, Global IME Capital, a total of 18,495 applicants were allotted 50 shares each under the general allotment process. In addition, the remaining 18 shares were distributed to 18 applicants at the rate of one extra share each, resulting in those investors receiving 51 shares apiece.
The IPO drew massive interest from the public. A total of 532,888 applicants applied for 27,215,100 shares. Out of these, 519,046 applications were approved, while 13,842 applications were rejected due to technical or procedural errors.
Reliance Spinning Mills had issued the IPO to the public from January 21 to January 25 (Poush 7–11). Out of the total shares allocated for public issuance, 57,798 shares were reserved for company employees. The remaining 924,768 shares were issued to the general public.
The IPO was issued at a premium price of Rs 820.80 per share.
Investors can check their allotment results through multiple platforms, including the website of Global IME Capital, their personal Mero Share accounts, the official website of Reliance Spinning Mills, and the website of CDS and Clearing Limited.
The heavy oversubscription once again highlights strong retail investor interest in Nepal’s primary market, even as the probability of allotment remains low due to limited share availability.
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