Reliance Spinning Mills has reported its third-quarter financial results for the fiscal year 2080-81, showing a steep decline in net profit to Rs. 2.63 crores. This represents a dramatic 97.16% decrease compared to Rs. 92.78 crores in the previous fiscal year (2079-80).
The company, currently in the process of issuing its Initial Public Offering (IPO), has a paid-up capital of Rs. 1.70 Arba and other equity totaling Rs. 5.32 Arba as of Q3 FY 2080-81. Revenue from sales dropped significantly by 30.02%, amounting to Rs. 7 Arba. Other income also fell by 42.70%, reaching Rs. 2.14 crores.
Finance costs for Reliance Spinning Mills surged by 49.96% to Rs. 37.33 crores in Q3 FY 2080-81. The annualized Earnings per Share (EPS) decreased sharply to Rs. 2.60 from Rs. 72.46 in FY 2079-80. The Net Worth per Share is currently Rs. 411.69.
As part of the IPO process, the company issued an offer letter on 27th Ashadh, 2081, to issue shares through the book-building process. Reliance Spinning Mills plans to issue 10.14% of its Rs. 1.90 Arba capital, totaling 19,26,600 shares. Out of these, 40%, or 7,70,640 shares, have already been allocated to Qualified Institutional Investors (QIIs). The remaining 60%, or 11,55,960 shares, will be available to the general public.
Of the total 11,55,960 units, 10%, or 1,15,596 shares, are reserved for Nepalese citizens working abroad. The remaining 10,40,364 units will be offered to the general public at Rs. 820.80 per share, marking it the highest IPO price to date.
The financial results and ongoing IPO reflect a critical period for Reliance Spinning Mills as it faces decreased profitability while aiming to expand its shareholder base in challenging market conditions.