Reliance spinning mills (upcoming IPO in Nepal via Book Building)

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Reliance spinning mills a Nepali manufacturing company is one of the big in its kind of more than 3000 employees, there is another good thing about the company is a female employee is major which is the best thing about it and we must encourage such a company to grow big. Reliance Spinning Mills Ltd established and Started in 1994. The company has two factories and is a professionally managed and technologically advanced spinning mill. It manufactures yarn(Polyester textured & partially oriented). 

It has proposed to issue an IPO of 14,60,000 shares, 40% to the institutional investor and 60% to the general public. It has proposed to issue its share via book building. Book Building is the process under which price is determined by underwriter by book value (i.e. Books of account given importance and accordingly price will be determined) generally shares issued are on face value (RS.100) in Nepal. It is expected that it starts its IPO price with Rs.750. 

The shares issued via book value are relatively expensive than the shares issued on face value. Book Building will give somehow the real value of shares to invest in and investors will be more okay with it especially long term. We hope its IPO comes soon and we will know more about it after seeing the prospectus and profile currently there is not much information available and there is not more thing to comment on.