Investors opine premium price of Nepal Life Insurance to be very high

Nepal Life Insurance Company  Limited (NLIC) will be issuing 30,96,429 unit shares FPO at a premium price of Rs 2,951. The premium price is yet to be approved by the regulatory body. Here are some opinions of experts on the same issue? Binod Rimal Broker Number 14 (Nepal Stock House Private Limited) Nepal Life Insurance entered into insurance sector as a brand. In my opinion the premium price of NLIC is a bit too high and I think it is high because of its brand.  I think the FPO issue will be fully subscribed. The net worth per share of the company stands at Rs 149.77 because of which we can say that the price seems a bit too high. If FPO started issuing at such higher price than it will  establish a trend where insurance companies will start taking FPO as a business instead of doing actual business and providing return to the shareholders. The premium price of FPO is high because the share price of its public share in secondary market is hovering around Rs 4500. The share price of public shares of NLIC is high because of the news that it will be issuing FPO. Rajendra Maharjan Investor In my opinion, FPO at a premium price of Rs 2851 proposed by the company is very high. Few days back the share price of NLIC was hovering around Rs 3300-3500. From the last two trading days the price has nearly reached to Rs 4500. The trading from the past two days was abnormal. It looks like it was planned to hike the price of public share in secondary market and then come out with the FPO price of Rs 2,951. I think the price is not realistic at all. I also think that the regulatory body will not be providing approval to premium at such high price. Bishnu Tripathi Investor I think the premium price of NLIC Is not justifiable. I suppose it would not be approved by the regulatory  body. If it does get approval than it can be said that the corporate body is more powerful than the regulatory body. General public interest and money should be taken in concern. When IPO is issued in Rs 100 face value or on the basis of its net worth then FPO should not be issued only on the basis of its secondary market price. This will be maniac decision if approved by the regulatory body. The FPO will make the company strong and the reserve will increase by nearly 9 arba. The FPO will also be subscribed fully as there is so much of charm in the market,  but we should remember whether the company is worth the mentioned price or not?