Reliance Spinning Mills’ IPO process suspended by SEBON due to PAC’s concerns

KATHMANDU: The Securities Board of Nepal has canceled the IPO process of Reliance Spinning Mills. The board made this decision on Wednesday after the Public Accounts Committee of the Parliament raised five questions following the approval of the public issue through the book-building method, which had led to controversy.

Reliance Spinning Mills was preparing to issue the IPO to Nepalis working abroad in the first phase starting Thursday. The board canceled the IPO just 14 days after granting approval.

“After the Public Accounts Committee raised questions, it had to be paused for some time, and accordingly, the board made the decision,” said Dr. Nabaraj Adhikari, spokesperson of the Securities Board. He added that the board decided to halt the process temporarily due to the parliamentary committee’s interest and the various issues that had surfaced in the media.

On Tuesday, the Public Accounts Committee had sent a letter to the Securities Board, asking them to respond to five questions within seven days regarding the matter. The company had already sold IPOs to institutional investors through the book-building method.

In relation to the share issuance of Reliance, the Public Accounts Committee had sent a letter to the Nepal Securities Board on Tuesday. The committee instructed the board to respond to the letter within seven days.