The long-stalled IPO of Reliance Spinning Mills is finally moving ahead after the full court order from the Patan High Court reached the Securities Board of Nepal. The board has now reopened the IPO process based on that decision.
For months, the IPO was halted without a clear legal reason. Earlier, the Securities Board had stopped the company from issuing shares soon after granting approval. This raised questions from the court.
The full text of the verdict from a joint bench led by Judges Rajkumar Khatiwada and Surya Prasad Rijal states that the board’s decision to block the IPO lacked legal grounds. The court ruled that the letter sent to Global IME Capital to freeze the share issuance was unlawful.
The court further said that the IPO must proceed according to the approval already given on Ashar 12, 2081. It ordered the board to allow the company to carry out the issuance process as required by law.
IPO to resume
With the court’s direction now in hand, the board is preparing its final approval. Reliance Spinning Mills will issue shares to the public at a price of 820.80 rupees per share through the book-building method.
Cost for investors
Under this method, applicants must apply for at least 50 units. This means investors need a minimum of 41,040 rupees to participate. It is one of the most expensive IPOs ever seen in Nepal, and many investors have long argued that the company’s financial strength does not justify such a high price.
