Kathmandu. The listing of shares of Reliance Spinning Mills Limited (RFL) is likely to take place shortly.

The company has already sent the necessary documents to the Nepal Stock Exchange (NEPSE) for the listing of the shares. The documents are being studied and will be listed shortly, according to NEPSE.

According to NEPSE sources, some discussions are still pending on how much to give the company’s opening range. The company is discussing the opening range of net worth less than the share price issued to the public.

The company’s shares will get up to three times the net worth in the opening range. If you get three times the net worth, then the company’s first share price will reach a maximum of Rs 752.40 per share.

The net worth per share of the company is Rs. 250.80 for the end of the financial year 2081÷082. This is the net worth per share (excluding revaluation reserve and share premium on assets). The company has not mentioned the net worth per share (the situation of calculating the liability of electricity tariff).

The company had fixed the cut-off price of Rs 912 per share from qualified institutional investors through a book building process. According to the Securities Board of Nepal (SEBON) book building guidelines, the IPO was issued to the general public at Rs 820.80 per share.

When a company’s shares are traded for the first time, the opening range is determined on the basis of the company’s net worth, issued capital, financial condition and market structure. However, in the case of Reliance Spinning Mills, the IPO price is much higher than the normal fixed price IPO, so there is a problem in determining the price range, according to a Nepse source.

In the report published in July 2081, the company has presented only the net worth along with the premium. Although the prospectus has mentioned the financial position of the previous year, the projected position of the current fiscal year and the data of the recent period, the net worth after adjustment of electricity arrears has not been included in the prospectus.

Before the IPO issuance, the company publishes its prospectus. Although the Securities Board of Nepal (SEBON) has published the previous prospectus, it has not made public the latest prospectus prepared by the company. The listing of NEPSE has been delayed due to the lower price in the opening range than the per share price allowed by the Securities Board of Nepal to issue shares.

The company has started the process of issuing shares to the general public by approving the prospectus in July 2081.