Kathmandu — Reliance Spinning Mills Limited has opened its Initial Public Offering (IPO) to the general public starting today, following earlier allotments to Nepali citizens working abroad and institutional investors.
The company priced its IPO using the book building method, the same approach used previously by Sarbottam Cement. Reliance first offered shares to Nepali migrant workers, then allocated shares to qualified institutional investors through competitive bidding. The cutoff price was set at NPR 912 per share. After applying a 10% discount, the final price for public investors is NPR 820.80 per share.
Out of the total offering, 57,798 shares are reserved for company employees. The remaining 924,768 shares are now available to the public. Investors can apply for a minimum of 50 shares and a maximum of 20,000 shares. The IPO closes on December 25, unless fully subscribed earlier. If not, the deadline extends to January 4.
Global IME Capital Limited is managing the share issuance. Investors can apply through the “Mero Share” online platform using the C-ASBA system via approved banks and financial institutions.
Reliance Spinning Mills was registered in 1994 and began operations in 1995. The company produces high-tech yarn and exports over 70% of its output to countries including India, Turkey, Vietnam, and the UK. Annual exports exceed USD 50 million.
The company’s main plant is in Khanar, Sunsari, with a branch in Duhabi. Founding investors include Pawan Kumar Golyan, Akshay Golyan, and Shashikant Agrawal. Pawan chairs the Golyan Group, which has operated for over 60 years, while Akshay serves as managing director.
In mid-2024, the Nepal government honored Akshay Golyan as a “Commercially Important Person” (CIP) for his contribution to the national economy.
The company received approval in 2020 to expand its capital and production capacity. It now produces viscose and allo yarn, each with an annual capacity of 6,300 metric tons. Total annual capacity is projected to reach 65,520 metric tons, with daily output at 182 metric tons. Installed power capacity is 23,000 kVA. Reliance uses advanced spinning machinery from leading global manufacturers.
Of the company’s NPR 1.9 billion issued capital, 10%—or 115,596 shares—were allocated to migrant workers. Earlier, 770,640 shares were distributed to institutional investors. The remaining shares are now open to the public.
Reliance plans to use the raised capital to expand production, boost exports, and generate foreign currency. It also aims to create jobs in Nepal, reduce labor migration, and support women’s employment and income generation.
Financial reports from the past five years show strong performance. Comparing FY 2080/81 and 2081/82, the company posted sharp recovery. Total revenue rose from NPR 9.2 billion to NPR 10.23 billion. Operating profit jumped from NPR 572.8 million to NPR 1.03 billion.
Cash reserves also improved. As of FY 2081/82, Reliance holds NPR 5.82 billion in total reserves, up NPR 475.8 million since its last valuation 18 months ago.
The net worth per share, including revaluation, stands at NPR 411.11. The current IPO price does not fully reflect the added reserves and net worth. If priced based on FY 2081/82 earnings, the IPO rate would be higher. However, due to a court ruling, the company continued with its earlier pricing, which benefits investors.
Reliance received a “Single A Minus” rating from Care Ratings Nepal. The IPO process was delayed due to a legal dispute, but the High Court ruled in favor of the company, allowing the offering to proceed.
