Company's attention drawn to the price limit of Rs 100 to Rs 300 set by NEPSE
What you should know
The company has disagreed with the initial trading price of Reliance Spinning Mills set by the Nepal Stock Exchange (NEPSE). Reliance was listed on the NEPSE in the last week of Magh after issuing an IPO to the public.
Accordingly, the company is starting trading from Monday. NEPSE has fixed the opening range for the first transaction from Rs 100 to Rs 300.
The company has stated that it has drawn attention to the same price limit (opening range). ‘Information has been received that the opening range of shares has been fixed from Rs 100 to Rs 300, which is only three times the face value. The company understands that this limit is contrary to the basis and practice adopted in the listing of other companies earlier,’ the company said in a statement.
The Nepal Securities Board, on the other hand, has stated that it has allowed the company to issue shares in accordance with the guidelines on book building methods. The company had drawn attention to the fact that since the book building method is different from the normal method, the basis for determining the initial price of share listing should also be different. Ultimately, it was not heard. After that, the company was forced to list the shares.
‘Regardless of the initial price of the transaction, we would like to draw the attention of investors to the actual financial position of the company,’ the statement said.
The company claims that the company's share price of Rs 912 is not based on a hypothetical basis, but is the actual price determined by expert financial institutions considering the company's financial projections and potential.
The company says that Nepse itself has set the share purchase price limit between Rs 688 and Rs 912 through sealed bids among qualified institutional investors.
The company has stated that the price set by institutional investors has been reduced by 10 percent as per the book building guidelines and has been set at Rs 820 for general investors.
