IPO allotment of General Insurance concludes; lucky 2,73,000 investors get 10 units each and remaining 5,21,546 applicants return empty hand

The IPO allotment of General Insurance Company Nepal Limited is allotted today (Ashwin 20) at the premises of NIBL Ace Capital Limited.

General Insurance Company Nepal Limited has issued of 30,00,000 units ordinary shares worth Rs 30 crore to the general public from Ashwin 11- 14, 2077.

Out of the offered 30,00,000 units; 4% of the total offered shares to the general public i.e. 1,20,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 1,50,000 units have been set aside for the mutual funds. The remaining 27,30,000 units are for the general public.

IPO Allotment of General Insurance Company Nepal Limited [LIVE VIDEO]

The issue had received applications from 7,94,546 valid applicants who had applied for a total of 21,410,750 units. The issue was oversubscribed by 7.56 times. In total 2,188 invalid applicants applied for 48,649 units. 

As per the allotment module, a total of 2,73,000 applicants were allotted 10 units each via lottery, and the remaining 5,21,546 applicants were returned empty hands. 

A total of 1,20,000 units were allotted to the staff of the company and 1,50,000 units allotted to mutual funds.

The IPO result can be accessed by sharesansar.com- IPO result page .

Allotment Module:

After the issuance of 30,00,000 units worth Rs 30 crore IPO shares the general public i.e 30% of total capital which will together raise its paid-up capital to Rs 1 arba and the promoter/public ratio will be 70:30. 

The company’s profit had increased from Rs.3.62 crores to Rs.5.06 crores in the fourth quarter of the last fiscal year 2076/77. 

Care Ratings Nepal Limited has assigned the „CARE-NP BB+ (Is)‟ rating to General  Insurance  Company  Nepal  Limited  (GIC). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations, in Nepal. 

General  Insurance Company  Nepal Limited  (GIC)  is a  general  (non-life)  insurance company.  The company has started its operation on June 20, 2018. The company has been offering a range of general insurance covers for businesses  &  individuals and has a  comprehensive range of general insurance products for  Fire,  Marine,  Motor,  Engineering,  Miscellaneous and  Agriculture, etc. GIC  is promoted by institutional and individual promoters from different backgrounds.  The promoter group shares of the company are mostly held by Mrs. Babita Kumari Agrawal with 9.07% of total shares followed by Mega Bank Nepal Limited, “A” class financial institution (7.14%), and Deva Bikas Bank Limited, “B” class financial institution (7.14%). GIC has a network of 39 branches (including head office) supported by 178 employees and 171 insurance agents as of Mid-January 2020. GIC has an assets base of Rs.963 Mn as on July 16, 2019, which witnessed 31.52%  growth over  FY18.