Kathmandu, Mangsir 25. The Initial Public Offering (IPO) of Reliance Spinning Mills Limited (RSML) for Non-Resident Nepalis (NRNs) and foreign Nepalese immigrants closes today, Mangsir 25, 2082. The issue, which opened on Mangsir 22, represents the final segment of the company's public share offering process.

Issue Structure and Process:
This public issuance follows the company's earlier allotment to Qualified Institutional Investors (QIIs) via a book-building process. In total, RSML is issuing 10.14% of its issued capital of Rs 1.90 Arba, amounting to 19,26,600 shares. Of this, 40% (7,70,640 shares) were already allotted to QIIs in Magh 2080 at a cut-off price of Rs 912 per share. The remaining 60% (11,55,960 shares) is being offered to the public.

The ongoing offering specifically allocates 1,15,596 units (10%) for Nepalese citizens abroad. The remaining 10,40,364 units are reserved for the general public, whose issue date will be announced later.

Strong Investor Response:
As of 5 PM yesterday, the issue for NRNs has seen significant demand. According to the CDSC, 34,287 applicants applied for a total of 19,52,470 units, resulting in an oversubscription of approximately 16.89 times.

Pricing Details:
For common investors, including the public and NRNs, the share price has been set at Rs. 820.80 per share. This price is derived from the book-building method guidelines, which stipulate a public offering price 10% lower than the QII cut-off price.

Corporate Background and Ratings:
Established in 2051 B.S., Reliance Spinning Mills is the largest spinning mill in Nepal, employing over 4,300 people. It operates two manufacturing units in Sunsari with a total annual capacity of 40,680 MT, producing polyester, viscous, and acrylic yarn for export, primarily to India and Turkey.

CARE Ratings Nepal has maintained the company's issuer rating at 'CARE-NP A- (Is)' under credit watch with developing implications, indicating adequate safety and low credit risk. The rating applies to its long-term and short-term bank facilities as well.

Global IME Capital is the issue manager for the IPO. Applications were accepted for a minimum of 50 units and a maximum of 20,000 units.

Following Sarbottam Cement, Reliance Spinning Mills becomes the second company in Nepal to issue an IPO using the book-building method.