Reliance had started the process of issuing IPO to the public a year ago at a price of Rs 820.80 per share.
What you should know
The path for Reliance Spinning Mills to go public has been cleared. The Securities and Exchange Board of Nepal (SEBON) on Tuesday cleared the way for the IPO, implementing the Patan High Court's order.
"As per the approval of the Patan High Court on 12 Ashad 2081, the petitioner company has been directed to issue the necessary release as per the law, and the process of public offering of the company is hereby informed," the board said in a letter sent to the issue and sale manager Global IME Capital Limited on Tuesday. Reliance had started the process of issuing primary shares to the public a year ago at a price of Rs 820.80 per share. Institutional investors have already bought the IPO at a price of Rs 912 per share.
Reliance Spinning Mills is a company of the industrial house Golyan Group. Established in 2054, the industry has been making significant improvements in production and profits in recent times. According to the annual financial statements released by the company, it earned a profit of Rs 1.48 billion in the last fiscal year 2081/82, which is about 42 percent more than the previous year. The company's profit last year was Rs 865 million.
The financial statements show an 845 percent increase in Reliance's net profit. The company, which earned a net profit of Rs 53,83,793 in the financial year 2080/81, earned a net profit of Rs 476,378,860 in the last financial year, according to the financial statements. Reliance is currently led by Akshay Golyan.
