Reliance Spinning Mills IPO: Goldmine or Risk? Everything You MUST Know Before Poush 7!

Reliance Spinning Mills IPO: 

Goldmine or Risk? Everything You MUST Know Before Poush 7!

The wait is finally over, but the debate is just beginning. After a roller-coaster ride of court cases, parliamentary halts, and heated social media debates, Reliance Spinning Mills Limited (RSML) is officially opening its IPO to the general public.

​Is this the high-value investment Nepal has been waiting for, or is the price tag too steep? Let’s dive into the details that every investor needs to see.

The Master Schedule: Mark Your Calendars

The company has already completed its first phase for Nepalis working abroad (which was oversubscribed in just 30 minutes!). Now, it’s your turn:

  • ​Public Issue Starts: Poush 7, 2082 (December 22, 2024)
  • ​Public Issue Ends: Poush 11, 2082 (Early Closing)
  • ​Extended Deadline: Poush 21 (Only if not fully subscribed)

The Price Tag: Why is it so high?

Unlike regular IPOs at Rs. 100, Reliance is using the Book Building Method.

  • ​Institutional Price: Rs. 912 per share.
  • ​General Public Price: Rs. 820.80 per share (a 10% discount).
  • ​Minimum Investment: You must apply for at least 50 units. This means you need a minimum of Rs. 41,040 in your bank account to participate.

By the Numbers: What are you buying?

Reliance Spinning Mills is a giant in Nepal’s industrial sector, exporting 70–75% of its yarn to countries like Turkey, India, and the UK.

  • ​Total Shares for Public: 9,24,768 units (after employee and mutual fund quotas).
  • ​EPS (Earnings Per Share): Reported around Rs. 27.87.
  • ​Net Worth Per Share: Approximately Rs. 250.80.

The Controversy: Why was it halted?

If you’ve seen the news, you know this IPO didn't come easy. It was stalled for nearly 17 months due to:

  1. ​Financial Discrepancies: Questions were raised about inconsistent financial data in different prospectuses.
  2. ​NEA Electricity Dues: There was a major dispute regarding unpaid "Dedicated & Trunk line" electricity bills.
  3. ​The Courts: After several writ petitions, the Supreme Court and Patan High Court eventually cleared the path, provided the company published a revised and transparent prospectus.

To Apply or Not to Apply? (The Viral Debate)

Investors in Nepal are currently split into two camps:

  • ​The Optimists: Point out that this is a massive, profit-making manufacturing company with a huge export market. They see the Rs. 820 price as a fair entry point for a "Blue Chip" industrial stock.
  • ​The Skeptics: Argue that a 50-unit minimum (Rs. 41k+) is too expensive for small investors and worry about the historical controversies and the debt burdens of the company.

How to Apply

If you decide to jump in, the process is the same as any other IPO:

  1. ​Log in to your MeroShare account.
  2. ​Go to the "My ASBA" section.
  3. ​Select Reliance Spinning Mills Limited.
  4. ​Enter the number of units (Min 50) and your CRN number.
  5. ​Submit and confirm.

​#NepalStockMarket #NEPSE #RelianceSpinningMills #IPOAlertNepal #ShareMarketNepal #Investment #BookBuilding


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