Kathmandu: The initial public offering (IPO) of Reliance Spinning Mills was oversubscribed within just 40 minutes of opening on Monday, highlighting exceptionally strong demand from investors.
Not only was the issue fully subscribed in less than an hour, but the pace of applications was also remarkably high. According to CDSC, applications for Reliance shares were being submitted at a rate of nine per second. By 10:40 am on Monday, 21,953 applicants had applied for a total of 1,156,480 shares, while the company had offered only 924,768 shares to the general public.
The company has issued 1,926,600 shares worth Rs 192.66 million, which represents 10.14 percent of its paid-up capital of Rs 1.9 billion.
In the first phase, 40 percent of the total issue—770,640 shares—was already allotted to eligible institutional investors.
Of the remaining 60 percent, or 1,155,960 shares earmarked for the public, portions were reserved for Nepalis working abroad, mutual funds, and company employees. After these allocations, the remaining 924,768 shares were opened to the general public. Shares allocated to overseas Nepalis and mutual funds were also oversubscribed by nearly 17 times, and allotment in those categories has already been completed.
The subscription period for what is one of the largest IPOs issued to the public is scheduled to run from December 22 to December 26. If full subscription had not been achieved, the issue period could have been extended until January 5. However, given the oversubscription, the issue manager Global IME Capital has stated that an extension is unlikely.
Investor enthusiasm for the IPO has been driven primarily by the company’s trusted legacy, strong financial position, and consistent record of profitability, according to Reliance Spinning Mills.
Established more than three decades ago, Reliance Spinning Mills is Nepal’s largest yarn producer and one of the country’s major industrial employers. The company exports more than 70 to 75 percent of its production to markets including India, Turkey, Vietnam, and the United Kingdom, with annual exports valued at around US$ 50 million.
The company’s main manufacturing facility is located in Khanar, Sunsari, with a branch plant in Duhabi. Reliance was founded by some of Nepal’s most prominent industrialists—Pawan Kumar Golyan, Akshay Golyan, and Shashikant Agrawal. Pawan Kumar Golyan is the chairman of the six-decade-old Golyan Group, while Akshay Golyan serves as the group’s managing director.
Reliance is currently led by Akshay Golyan, under whose leadership the company has established a strong presence in international markets. In recognition of his contribution to industry, commerce, and the national economy, the Government of Nepal honored him last July with the prestigious “Commercially Important Person” (CIP) award.
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