Reliance Spinning Mills: Navigating Financial Turbulence with Strategic IPO Launch

Reliance Spinning Mills Limited reported a net profit of NPR 26.3 million for the third quarter of the current fiscal year, up to Chaitra. This is a significant drop compared to the NPR 927.8 million profit earned by the company in Ashad of the previous year. The decline in profit is attributed to a decrease in business performance. The company's trade, which was NPR 10.58 billion in Ashad, has dropped to NPR 7.21 billion by the current quarter.

Key Points:

1. Net Profit:

- Current year's third quarter: NPR 26.3 million

- Previous year's Ashad: NPR 927.8 million

2. Decline in Trade:

- Previous Ashad: NPR 10.58 billion

- Current year's third quarter: NPR 7.21 billion

3. Other Income Drop:

- Previous year: NPR 37.4 million

- Current year: NPR 21.4 million

4. Increase in Financial Expenses:

- Previous year: NPR 249 million

- Current year: NPR 373.3 million

5. Paid-up Capital:

- NPR 1.707 billion

6. Other Equity:

- NPR 5.3216 billion

7. Earnings Per Share:

- Previous year: NPR 54.34

- Current year: NPR 2.08

IPO Announcement

Reliance Spinning Mills has announced the issuance of an IPO through the book-building method from Ashad 27. This IPO is intended for Nepali citizens employed abroad. The company plans to issue 10% of the allocated ordinary shares, amounting to 115,596 shares, for public issuance.

Key IPO Details:

1. IPO Issuance Date:

- From Ashad 27 to Shrawan 10

2. Number of Shares:

- 115,596 shares

3. Per Share Price:

- NPR 820.80

4. Application Limits:

- Minimum 50 shares

- Maximum 20,000 shares

Conclusion

The current financial situation of Reliance Spinning Mills and the announcement of the IPO are crucial information for investors. Interested investors should apply within the given timeframe and thoroughly study the company's financial status. The IPO provides an opportunity for Nepali workers abroad to invest in local industries, contributing to the economic development of the country.