Applications for Reliance Spinning Mills IPO Open Today
22nd December 2025, Kathmandu
Reliance Spinning Mills Limited has officially launched its Initial Public Offering to the general public starting today Poush 7 2082. This marks the second phase of the capital raising process for the company after successfully completing the first phase which was reserved for Nepalese citizens employed abroad. As the largest spinning mill in Nepal the entry of Reliance Spinning Mills into the secondary market is a highly anticipated event for investors seeking exposure to the manufacturing and export sector. The company which has been operational since 1994 is a joint venture between the Golyan Group and the MS Group and its decision to go public via the book building method represents a significant shift in the corporate landscape of the country.
Reliance Spinning Mills IPO
The public issue is structured to offer a total of 1,155,960 shares. However the allocation has been divided into several categories to ensure broad participation. A total of 57,798 shares have been allocated to mutual funds and another 57,798 shares have been reserved for the dedicated employees of the company. Additionally 115,596 shares were pre allotted to Nepalis working abroad leaving a net of 924,768 shares available for the general public. This offering is significant not only because of the size of the company but also because it is only the second time that the book building process has been utilized for an IPO in Nepal following the successful listing of Sarbottam Cement.
UNDERSTANDING THE BOOK BUILDING PRICE AND INVESTMENT LIMITS
One of the most notable features of this IPO is the pricing mechanism. Under the Book Building Guidelines 2077 the price was determined through a bidding process involving qualified institutional investors. During the initial bidding phase institutional investors set a cut off price of 912 Nepalese rupees per share. According to the regulatory guidelines shares offered to the general public must be priced at a 10 percent discount from this cut off price. Consequently the IPO price for common investors has been fixed at 820.80 rupees per share.
Because of this higher price point compared to the traditional 100 rupee par value IPOs the minimum investment requirement is also higher. General investors must apply for a minimum of 50 shares which translates to a total investment of 41,040 rupees. The maximum limit for application has been set at 20,000 shares. The application window is relatively short opening on Poush 7 and scheduled to close on Poush 11. However if the issue is not fully subscribed within this four day period the deadline may be extended until Poush 21. Given the high interest in manufacturing stocks in the current market many analysts expect the issue to be fully subscribed within the early closing date.
COMPANY PROFILE AND EXPORT DOMINANCE
Reliance Spinning Mills Limited is a heavyweight in the industrial sector of Nepal. The company operates two high tech manufacturing units located in Khanar and Duhabi in the Sunsari district. It is the largest employer in the yarn manufacturing industry in Nepal providing jobs to over 4,300 people including a significant number of women. The company specializes in the production of high quality Polyester Viscose and Acrylic yarns which are used for weaving knitting and hosiery.
A key strength of Reliance Spinning Mills is its export capability. The company exports approximately 70 to 75 percent of its total production to international markets including India Turkey Vietnam and the United Kingdom. This strong export orientation allows the company to earn valuable foreign currency and contributes significantly to the trade balance of Nepal. The leadership team is currently headed by Chairman Pawan Kumar Golyan while Akshay Golyan serves as the Managing Director. The financial reports for the fiscal year 2081/82 showed a net profit of approximately 476 million rupees which was a substantial increase from the previous year reflecting the scaling up of its operations and improved efficiency.
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RISK ASSESSMENT AND CREDIT RATINGS
Before investing in any IPO it is essential to consider the risks and the official credit ratings. CARE Ratings Nepal has assigned the company a CARE NP Single A Minus Issuer Rating. This rating indicates that the company has an adequate capacity to meet its financial obligations in a timely manner and carries a relatively low credit risk. The rating agency noted the established track record of the company its experienced management and its strong market position as positive factors.
However potential investors should also be aware of specific challenges. The spinning industry is susceptible to fluctuations in raw material prices particularly since the company imports a large portion of its raw materials from countries like China and Indonesia. Additionally the textile industry is sensitive to global economic cycles. There have also been public discussions regarding the outstanding electricity tariff liabilities of the company to the Nepal Electricity Authority which some investors are monitoring closely as it may impact the net worth per share in the future. Despite these factors the consistent demand for its products in India and Turkey provides a stable revenue cushion.
HOW TO APPLY AND THE ROLE OF GLOBAL IME CAPITAL
The application process for the Reliance Spinning Mills IPO is fully digital and integrated with the C ASBA system. Investors can submit their applications through any ASBA member bank or financial institution approved by the Securities Board of Nepal. This includes almost all commercial banks and development banks in Nepal. For most retail investors the easiest way to apply is through the Mero Share online platform or the Mero Share mobile application.
Global IME Capital Limited has been appointed as the issue and sales manager for this IPO. They are responsible for managing the collection of applications the allotment process and ensuring that the shares are eventually listed on the Nepal Stock Exchange. Once the allotment is completed the shares will be credited to the Demat accounts of the successful applicants. Given that this is a book building IPO the allotment will likely follow a lottery system if the demand exceeds the supply as has been the trend with other high profile issues in the country.
CONCLUSION AND NEXT STEPS FOR INVESTORS
In conclusion the opening of the Reliance Spinning Mills IPO is a milestone for the Nepalese stock market in 2082. With its strong industrial base massive export volume and a 10 percent discount on the institutional price it presents a unique opportunity for long term investors. While the minimum investment of 41,040 rupees is higher than average it reflects the intrinsic value determined by institutional bidding. Potential investors should ensure that their bank accounts have sufficient balance and that their CRN numbers are active before submitting their applications on Mero Share.
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