Reliance Spinning Mills' shares are in the process of being listed on the Nepal Stock Exchange (NEPSE).
What you should know
The Kathmandu District Court has ordered the publication and broadcast of false, misleading and absurd articles and news against Reliance Spinning Mills to be stopped.
The order was issued on Thursday in a petition filed against Khagendra Raj Kandel (Rabin).
Reliance had filed a defamation and defamation case on Wednesday, alleging that written, audio and video publications were published or broadcast with the intention of defaming Kandel, the Nepal Stock Market Investors Association, and the company and its founders. The bench of Justice Ram Chandra Khadka, while hearing the case on Thursday, prima facie called the articles and news false, misleading and absurd.
‘Since the publication or transmission of false, misleading articles and news through various social media platforms such as Arthasanchar, Bijshala, Arthasanchar YouTube channel, and Tanka Dahal YouTube channel, and the unsubstantiated and defamatory allegations of policy corruption, institutional crime, financial terrorism, and fraud, and the publication or transmission of written, audio, and video material with the intention of discrediting the company and its founders, by mentioning absurd and incorrect facts about the issues mentioned in the company’s prospectus, appears to be prima facie erroneous,’ the order states, ‘an interim order has been issued in the name of the defendants to refrain from publishing, broadcasting, and disseminating the relevant material of the aforementioned title in the media and online, and to prevent further dissemination of the material already published and broadcast.’
Reliance Spinning Mills’ shares are in the process of being listed on the Nepal Stock Exchange (NEPSE). Reliance had issued 19,26,600 shares worth Rs 192,266,000, equivalent to 10.14 percent of its issued capital of Rs 1.9 billion. 40 percent of the total shares issued (770,640 shares) were sold to eligible institutional investors through the book building method. Shares were sold to institutional investors at a rate of Rs 912 per share.
As per the book building guidelines, 60 percent of the shares have been distributed to the general public, Nepali citizens employed abroad, mutual funds and employees. As per the guidelines, the ‘cut-off’ price sold to institutional investors was fixed at Rs 820.80 per share after a 10 percent discount.
In the IPO conducted under the issuance and sale management of Global IME Capital, 21,807 people have received shares through the lottery method with a minimum of 50 shares per applicant. Global IME Capital has stated that shares have been distributed to 18,495 people in the general public and 2,311 people in the foreign employment group. There were a total of 574,692 applicants in all three groups, with a total of 25.11 billion 48.51 billion 532 rupees collected.
