Reliance Mills share price surges for 12 days, investors reach breakeven
Summary
Shares of Reliance Spinning Mills Limited surged for 12 consecutive days, helping investors reach breakeven despite initial trading prices being far below the IPO price due to a revised NEPSE rule.
Key Points
- Reliance Spinning Mills Limited shares surged for 12 days, closing at Rs 893.30 per unit.
- The shares initially opened at Rs 300, far below the IPO price of Rs 820.80 due to a revised NEPSE pricing rule.
- The NEPSE rule mandates opening price ranges up to three times the face value or net worth of the share, deviating from past practice.
- Market experts and investors criticized the rule, saying it adversely affects investors and may discourage IPOs via the book-building method.
