The company is going to issue 10 percent, or 115,596 shares, of the 1,155,960 shares set aside for public issuance for Nepalis who have gone abroad for employment.
What you should know
Reliance Spinning Mills Limited is set to open an initial public offering (IPO) for Nepalis employed abroad from Monday (22 Mangsir).
The company is going to issue an IPO for Nepali citizens who are employed abroad after obtaining a labor permit. The company is going to issue 10 percent of the 1,155,960 shares set aside for public issuance, or 115,596 shares, for Nepalese who have gone for foreign employment.
Reliance, which started the IPO issuance process through the book building method, had set the IPO price at Rs 820.80 a year ago. The company has stated that the price was determined based on the profit of the fiscal year 2080/81. According to the company's audited annual financial statements, the company claims that the company earned a net profit of Rs 54 million in that fiscal year. Reliance has already sold shares to institutional investors at a maximum rate of Rs 912 in Magh 2080. The share price has been set at a lower rate of 10 percent for the general public.
The annual financial statements also show a significant increase in total income and operating profit, according to a press release issued by the company. Reliance's total income in the fiscal year 2080/81 was Rs 9.26 billion, but it has increased to Rs 10.2378 billion in the fiscal year 2081/82. Similarly, operating profit has increased from Rs 572.8 million to Rs 1.372 billion.
The Nepal Securities Board had on Tuesday directed the issue and sale manager Global IME Capital to restart the IPO issuance process, implementing the Patan High Court's order.
