Reliance Spinning Mills IPO Receives 33 Times More Applications from the Public

The IPO of Reliance Spinning Mills has received 33 times more applications from the public than the available shares. The IPO, which opened for 924,768 shares, received applications for a total of 30,504,800 shares by the deadline on Friday.

The total amount raised through the IPO is NPR 25.3 billion, which is likely the highest ever in Nepal’s capital market in terms of the number of applications and the amount collected.

The company had issued the IPO on 7th Poush, with the largest portion (for the public) open for subscription. Initially, the deadline was set for 11th Poush, with a possibility to extend until 21st Poush, but due to the overwhelming response, the subscription period was not extended.

Managed by Global IME Capital Limited, the IPO was oversubscribed within just 40 minutes on the first day. Even after that, there was no decrease in investor interest, marking a new milestone in Nepal's capital market, according to the company.

The company issued shares worth NPR 192.66 million, which corresponds to 10.14% of the total capital, amounting to 192,660 shares.

In the first phase, 40% (77,640 shares) were allocated to eligible institutional investors, while 60% (115,560 shares) was made available for the public. Out of this, 92,476 shares were allocated for the general public after excluding shares for Nepali citizens in foreign employment, mutual funds, and employees.

There was a strong response from foreign workers and mutual investment funds, with applications being around 17 times higher for these categories.