Reliance Spinning Mills and Salpa Bikas Bank Listed Simultaneously on NEPSE

NEPSE listed the shares of Reliance Spinning Mills Limited (RSML) and Salpa Bikas Bank Limited (SABBL).

According to NEPSE, the shares of both companies will be open for trading in the secondary market from Falgun 4, 2082.

Reliance Spinning Mills Limited

Reliance Spinning Mills has listed a total of 19 million ordinary shares with a face value of NPR 100 per share. Out of these, 89.86% (17,073,400 shares) are held by promoters, while 10.14% (1,926,600 shares) belong to the general public.

The company’s head office is located in Kamaladi, Kathmandu. The issue and sales manager for the shares was Global IME Capital Limited.

Salpa Bikas Bank Limited

Similarly, Salpa Bikas Bank has listed a total of 5,223,880 ordinary shares with a face value of NPR 100 per share. As per the listing agreement, promoters hold 67% (3.5 million shares), while public investors own 33% (1,723,880 shares).

The bank’s head office is located in Diktel, Khotang. The issue and sales manager was Muktinath Capital Limited.

Revision in Opening Range Policy

NEPSE had decided to list both companies on Magh 29, 2082, in accordance with the Securities Listing Regulations, 2075. Along with the listing, NEPSE has revised its opening price range policy.

Previously, the opening range was set at up to three times a company’s net worth. Under the revised system, the opening range is now limited to three times the face value.

• For companies with positive net worth: up to three times the face value

• For companies with negative net worth: up to three times their net worth

For example, if a company’s net worth is NPR 120, the maximum opening range will be NPR 300. If the net worth is NPR 90, the opening range will be limited to NPR 270.

Impact on Investors

Due to the revised opening range, shareholders of Reliance Spinning Mills may have to sell their shares at a loss on the first trading day. However, Salpa Bikas Bank shareholders are unlikely to face such losses.

From Falgun 4 onward, investors will be able to buy and sell shares of both companies in the secondary market.