Kathmandu. The Securities Board of Nepal (SEBON) has allowed Reliance Spinning Mills to issue initial public offering (IPO). The board today approved the IPO issuance by implementing the order of the High Court, Patan.

In a letter to Global IME Capital, the board said, “As per the mandamus order issued by the High Court Patan on June 28, 2081 to release the required amount of shares for the issuance of the shares of the petitioner company, the board is requested to proceed with the public issue process of the company.” ’

With this approval, the process for listing of Reliance’s shares on the Nepal Stock Exchange (NEPSE) has started. A year ago, Reliance had started the process of issuing primary shares to the general public at Rs 820.80 per share. Institutional investors have already bought the IPO at Rs 912 per share.

The industry, established in 2054 BS, has been making significant improvements in production and profit in recent years. According to the company’s annual financial report, the company earned a profit of Rs 1.48 billion in the fiscal year 2081/82, which is 42 percent higher than the previous year. The company had posted a net profit of Rs 86.50 crore in the previous fiscal year.

According to the financial report, Reliance’s net profit has increased by 845 percent. The company earned a net profit of Rs 47,63,78,860 in the fiscal year 2080/81 compared to Rs 5,03,83,793 in the previous fiscal year.

Reliance is currently led by Akshay Golyan, a third-generation representative of the Golyan Group. The industry has established its unique identity in the international market as well. The Government of Nepal had honoured Spinning Mills leader Akshay Kumar with the ‘Person of the Year’ (CIP) in recognition of his significant contribution to the national economy through industry and commerce.