IPO issuance of Reliance Spinning Mills halted

The Securities Board of Nepal (SEBON) has decided to stop the process of issuing the initial public offering (IPO) by Reliance Spinning Mills (RSM). The very decision was made after the Public Accounts Committee (PAC) raised a question over the authenticity of its financial details (submitted to the SEBON).

RSM is being blamed for not only manipulating such details but also for trying to default more than Rs 750 million it owes to the Nepal Electricity Authority.

The company was scheduled to issue its primary shares at the rate of Rs 820.80 per unit through the book-building method from tomorrow.

According to Dr. Nawaraj Adhikari, spokesperson of SEBON, the halted IPO issuance process will be taken forward only after responding to the clarifications demanded by PAC. They are related to the basis for fixing the share price,  financial statements of the company, etc