Nepal’s largest employer and exporter, Reliance Spinning Mills, has witnessed unprecedented investor interest in its IPO. For the Mutual Fund quota of 57,798 shares, 924,768 applications were received, marking an 18-fold oversubscription.
Out of 45 mutual fund schemes that applied, 41 schemes were allocated shares.
The IPO quota for Nepali migrant workers also saw overwhelming response, with 36,082 applicants applying for 2,001,470 shares, potentially the highest ever in Nepal’s capital market history.
The IPO share price was fixed at NPR 820.80. According to the book-building system, the cutoff price was NPR 912, which after applying a 10% discount resulted in the final price.
Investor enthusiasm was evident within just 30 minutes of opening, with applications for 118,340 shares immediately received. Investors applied via the “Mero Share” online system.
For FY 2081/82, Reliance posted a total profit of NPR 148.93 crore and a net profit of NPR 47.58 crore, marking nearly a 9.5-fold increase compared to the previous year. Earnings per share (EPS) rose to NPR 27.87, up from NPR 2.95 the previous year.
The massive response to Reliance’s IPO highlights the company’s strong financial position, sustained profitability, and investor confidence, cementing its reputation in Nepal’s capital market.
