Kathmandu. Reliance Spinning Mills has expressed dissatisfaction with the opening range of its primary share issue (IPO). The company claims that the price range set by NEPSE is contrary to the real financial condition of the company.

According to a press release issued by the company, NEPSE has fixed an opening range of Rs 100 to Rs 300 per share. That’s only three times the face value. According to the company, during the listing, it has been seen that it has been treated differently when compared with the pricing practices and bases of other companies.

Stating that the Securities Board of Nepal (SEBON) has granted permission for the issuance of shares through the book building method, the company has said that the regulatory body should clarify the necessary legal and policy provisions regarding the listing of the shares issued under this method. According to the company, the initial price base will also be different while determining the price through book building, so the listing price range should be determined accordingly.

According to the company, the price of Rs 912 per share is an actual valuation based on the company’s financial projections and potential. Based on the same price, the price of shares was fixed at Rs 805 to Rs 912 per share through sealed bidding among qualified institutional investors. According to the company, the price fixed by the institutional investors has been fixed at around Rs 730/80 per share for the general public with a discount of 10 percent as per the book building guidelines.

The company’s current financial position also supports the high valuation, the press release added. According to the company’s second quarter unaudited financial statements for the fiscal year 2082/83, the net worth per share of the company is Rs. 491.55.

The company has urged investors to make investment decisions based on the company’s actual financial condition, projections and long-term prospects rather than the initial trading price of the shares.

On the other hand, some investors have complained that the general public should be allowed to buy at Rs 820 and eligible institutional investors at Rs 912. Does anyone have the answer that what law and authority has done to undermine the investment of the investor in this way? In a market like ours, its price will go above 912 tomorrow, but this process is not good.