KATHMANDU, Jan 30: Traders and investors on the NEPSE are required to commit a minimum investment of Rs 41,040 to partake in the Reliance Spinning IPO. Utilizing the book-building approach, the IPO sets its offering price at Rs 820.80 per share for the general public.
According to Nepal Stock Exchange (NEPSE), institutional investors have established the cut-off price for the Reliance Spinning IPO at Rs 912 by fully subscribing to all shares at this rate.
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There is a provision to extend shares to the general public at a discounted cut-off price, which, in this instance, is 10% lower in adherence to the book-building mechanism. Consequently, the revised share price for the public amounts to Rs 820.80 per share.
Under this arrangement, individual investors must submit applications for a minimum of 50 shares, amounting to a total cost of Rs 41,040.
Reliance Spinning plans to offer 10.14% of its total issued capital, totaling Rs 1.9 billion, equivalent to 1,926,266 shares. After allocating shares to institutions, the remaining 1,155,960 shares will be accessible for issuance to locals affected, individuals employed abroad, and the general public.
As of the end of July, the company's net worth per share stood at Rs 248.67. Moreover, the prospectus highlights an income per share of Rs 54.34 and an accumulated profit of Rs 5.63 billion. The anticipated standard investment payback period is 6.88 years.
