Today, the Nepal Stock Exchange (NEPSE) index experienced an upswing of 6%, triggering a third and final circuit breaker that resulted in a complete suspension of trading for the day. Conversely, Reliance Spinning Mills Limited (RSML) fell by 10.20 points (1.49%), concluding at Rs 675.30 per share. During the session, merely 10 units of the company’s shares exchanged hands.
On the final trading day of March 3, the company’s shares settled at Rs 685.50 each.
After commencing trading on February 16, the company’s shares soared through nine consecutive positive circuit limits before today’s downturn.
The listing of the company’s shares on NEPSE was delayed for over a month due to procedural complications. As per the current regulations outlined in the Securities Listing Bylaws, 2075, newly public enterprises are mandated to list their shares on NEPSE within weeks following the IPO allocation.
The company launched its initial public offering (IPO) to the public via the book-building approach. In accordance with this framework, the IPO price for the general populace was set at Rs 820.80 per share, necessitating more than 10 positive circuit successes to reach a breakeven point.
The IPO was made available to Nepali migrant workers overseas from December 8-11, 2025, and to the general public from December 22-26, 2025, utilizing the book-building strategy.
According to the guidelines of the Securities Board of Nepal (SEBON) related to book building, the company established a cutoff price of Rs 912 per share for qualified institutional investors, while the offer for the general public was set at 10% less than the cutoff price, amounting to Rs 820.80 per share.
Out of its total paid-up capital of approximately Rs 1.90 arba, the company allocated 10.14% of IPO (19,26,600 shares) to the public. Of the shares on offer, in accordance with the guidelines, 40% (770,640 shares) were reserved for qualified institutional investors, and 60% (12,71,556 shares) were designated for the general public, including 115,596 shares set aside for Nepali migrant workers abroad.
There was significant investor enthusiasm for the company, as the IPO was oversubscribed by over 30 times.
Within the general public category, a total of 532,888 applications were submitted, requesting a combined total of 27,215,100 shares. The total amount sought exceeded Rs 22 arba, with some reports indicating that the total reached Rs 25 arba. Under the Nepali migrant quota, 35,102 applications were made, seeking a total of 1,944,330 shares for the 115,596 units available. The total filed amount reached Rs 1.59 arba.
