Reliance Spinning Mills to Open IPO for Nepali Migrant Workers from December 7

Reliance Spinning Mills Limited is set to open its Initial Public Offering (IPO) for Nepali citizens working abroad from December 7 (Mangsir 22). The company has received the required labor approval from the Government of Nepal and will now proceed with the issuance targeted specifically at migrant workers.

The company will issue 10% of the total public offering—equivalent to 115,596 ordinary shares—for Nepali migrant workers. Although the face value of the shares is Rs. 100 per unit, investors will have to apply at Rs. 820.80 per share after a 10% discount on the cut-off price. Earlier, during the book-building auction for institutional investors, the cut-off price was fixed at Rs. 912.

Applicants must apply for a minimum of 50 shares, while the maximum limit has been set at 20,000 shares. The IPO issue will close early on December 10 (Mangsir 25) if fully subscribed, otherwise it may be extended until December 22 (Poush 7). Global IME Capital Limited is the issue manager. Investors can apply through C-ASBA member banks and financial institutions, their designated branches, or through the online platform ‘Mero Share’.

According to the rating assessment, CARE Ratings Nepal has assigned Reliance Spinning Mills the rating “CARE NP A- (Issuer Rating)”, indicating that the company has an adequate capacity to meet its financial obligations on time.

Reliance Spinning Mills is one of Nepal’s largest yarn manufacturing industries and also one of the biggest employers in the sector. The company exports more than 70–75% of its products to countries such as India, Turkey, Vietnam, and the UK. The company is chaired by Pawan Kumar Golyan, while Akshay Golyan serves as the Managing Director. Its main production unit is located in Itahari-12, Khanar, Sunsari, and the branch unit is situated in Itahari-4, Duhabi.

The company’s average payback period is 6.75 years, while the discounted payback period stands at 10.61 years.