The Securities Board of Nepal (SEBON) has allowed Reliance Spinning Mills Limited to restart its stalled initial public offering, ending nearly one-and-a-half years of uncertainty.
SEBON issued a formal instruction to the issue manager, Global IME Capital Limited, on December 2, 2025, asking it to resume the process.
The regulator had halted the IPO after disputes arose over the company’s approval to issue shares through the book-building method. Before that, the Public Accounts Committee of the now-dissolved House of Representatives had ordered SEBON to stop the process. The matter moved forward only after the Patan High Court ruled that the IPO could proceed once required procedures were completed.
A senior SEBON official confirmed that the directive to the issue manager was issued on December 2. “Although the company had already received SEBON’s approval, the Public Accounts Committee ordered an immediate halt after complaints were filed,” the official said. “Since the Patan High Court has quashed the writ petition filed against the issuance, SEBON has instructed the issue manager to resume the process.”
On July 9, 2024, four individuals, including Hari Bahadur KC, had filed a writ petition challenging the IPO. SEBON’s then-chairman, Narendra Kumar Rana, instructed the issue manager to suspend the issuance the following day. SEBON justified the suspension on the basis of the chairman’s decision.
The Patan High Court dismissed the petition on November 6, 2024.
Reliance Spinning Mills had received approval to issue 1,926,600 shares worth Rs 192.66 million through the book-building method. The shares represent 10.14 percent of its issued capital of Rs 1.90 billion.
After receiving SEBON’s initial approval, the company had already completed allocation to qualified institutional investors (QIIs). Approval for the QII issue was granted on January 4, 2024. Bids were invited from January 24 to 28, and allocations were completed on January 29. A total of 770,640 shares were allotted at a final price of Rs 912 per share.
On June 29, 2024, SEBON approved the issuance of 1,155,960 shares to the general public at a 10 percent discount on the QII price. The IPO price was set at Rs 820.80 per share. Of this, 115,596 shares were reserved for Nepali migrant workers. The issue was set to open on July 11. But, one day before launch, SEBON ordered the company to halt the offering after concerns were raised about its published financial statements.
The company is yet to publish its financial report for the first quarter of the current fiscal year, 2025/26. Unaudited figures for the fourth quarter of the last fiscal year show a sharp rise in performance. Net profit jumped by 845.51 percent year-on-year. Operating revenue crossed Rs 10.23 billion, up from more than Rs 9.20 billion a year earlier.
Financial expenses fell from over Rs 472.6 million to over Rs 435.8 million. Sales expenses rose 5 percent, increasing from more than Rs 8.34 billion to over Rs 8.75 billion.
The revenue surge pushed operating profit up by nearly 80 percent. It rose from more than Rs 572.7 million to over Rs 1.03 billion in the last fiscal year.
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