Himal Press 
KATHMANDU: The Securities Board of Nepal (Sebon) has decided to postpone the initial public offering of Reliance Spinning Mills (RSM).
A meeting of the board of directors of Sebon made the decision on Wednesday after the Public Accounts Committee (PAC) sought clarification from the stock market regulator over the company’s IPO pricing.
Among other concerns, the House panel sought clarification from Sebon on the discrepancy between the projected and actual earnings per share of the company.
While RSM had projected earnings per share (EPS) of Rs 54.34 for 2022/23, the actual EPS was only Rs 2.8.
RSM was scheduled to launch the initial public offering for foreign Nepali migrants starting Thursday. It was set to issue 1,155,960 units of shares with a face value of Rs 100 each at Rs 820.9 per unit.
The IPO price was fixed through book building. Book building is the process through which issue managers determine the price at which IPO shares will be offered. The issue manager invites institutional investors to submit their bids, specifying the number of shares and the price they are willing to pay. The price of the securities is calculated using a weighted average of quotes by institutional investors.
RSM earlier issued 770,640 units of primary shares to institutional investors in the last week of January.
