Reliance Spinning IPO case: CIB filed a complaint in Tameli against the business
The company filed a complaint with the CIB claiming that it will sell shares at a high price despite its precarious financial state. The company is set to conduct its maiden initial public offering (IPO) through the book building mechanism. By adding an extra premium of Rs 720 80 paisa to the Rs 100 face value, the corporation planned to issue shares at a price of Rs 820 80 paise each. How is the cost established? And why is it going to offer shares at a premium price given its precarious financial position? Questions were posed to the Securities Regulatory Board by CIB.
On July 24, the Securities Board replied to the CIB with a 48-page document. The Securities Board responded in writing to the CIB, stating that there was no weakness anywhere and that no additional investigation into the company was required, based on the permission granted to the company to issue the IPO through the book building system and the company's financial report. The Securities Board stated in its letter to the CIB that no additional inquiry is necessary because Reliance's financial statement was determined to be accurate.
According to Section 97 of the Securities Act 2063, CIB does not see the need to conduct further investigation as there is no evidence of wrongdoing and there is no wrongdoing in the financial statement. SAR Associates, who verified the company's financial statement, determined the price in accordance with the Securities Act 2063, Securities Registration and Issuance Regulations 2073, Securities Issuance and Allotment Directory 2074 and Book Building Directory 2077 0.96 paise and 2080–81 share income of 32 rupees 90 paise. Based on the subject of repeated studies and investigations in the Securities Board, it is not seen that the company's financial projection is impossible or dishonest.
Following such a response from the Securities Board, the CIB notified the board in writing on Friday, July 32 that the case has been placed on hold. The board has declared that no additional research into the company is necessary, hence the CIB has advised that the case has been placed on hold.
