Kathmandu — Final preparations are underway for the allotment of Reliance Spinning Mills Limited’s initial public offering (IPO). The issue manager, Global IME Capital, is preparing to complete the allotment process by Friday this week.
The IPO has attracted strong investor interest, receiving applications worth around 33 times the shares on offer. Issued at a price of Rs 820.80 per share, the IPO was heavily oversubscribed, with 583,975 applicants applying for approximately 35.58 million shares.
Reliance Spinning had opened its IPO for the general public from Poush 7 to 11. The company received approval to issue 1,926,600 shares worth Rs 192.66 million, which represents 10.14 percent of its issued capital of Rs 1.9 billion.
As per regulatory provisions, 40 percent of the IPO was allocated to qualified institutional investors and 60 percent to the general public. The institutional portion was already allotted in Magh 2080 BS. Similarly, 10 percent of the general public portion was earlier issued and distributed to Nepali workers employed abroad.
Under the allotment mechanism, 18,495 applicants are expected to receive shares on a 50/50 basis. Among them, 36 applicants will receive 51 shares each.
