IPO allotment of Prabhu Life Insurance concludes; lucky 5,40,000 investors get 10 units each and remaining 5,09,047 applicants return empty hands

The IPO allotment of Prabhu Life Insurance Limited is concluded today at the premises of Siddhartha Capital Limited. 

Prabhu Life Insurance Limited has issued 60,00,000 units worth Rs 60 crore as Initial Public Offering to the general public from (Mangsir 29- Poush 2, 2077). 

Out of the offered 60,00,000 units; 5% of the total offered shares to the general public i.e. 3,00,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 3,00,000 units have been set aside for the mutual funds. The remaining 54,00,000 units are for the general public.

The issue had received applications from 10,49,047 valid applicants who had applied for a total of 2,78,21,160 units. The issue was oversubscribed by more than 5.15 times. 

As per the allotment module, a total of 5,40,000 applicants were allotted 10 units each via lottery, and the remaining 5,09,047 applicants were returned empty hands. 

A total of 3,00,000 units were allotted to the staff of the company and 3,00,00 units allotted to mutual funds.

In total 2,169 applicants who applied for 47,720 units were disqualified.

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

 Allotment Module:

After the issuance of 60,00,000 units worth Rs 60 crore IPO shares the general public i.e 30% of total capital which will together raise its paid-up capital to Rs 2 arba and the promoter/public ratio will be 70:30. 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP Issuer Rating Double B plus) to Prabhu Life Insurance Limited (PLIL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations. ICRA Nepal has also assigned a grading of [ICRANP] IPO Grade 4, indicating below-average fundamentals, to the proposed initial public offering (IPO) of Rs. 60 crores.

Prabhu Life Insurance Limited is a new player in the life insurance industry of Nepal. Along with nine other LICs, the company was licensed by the Insurance Board in 2016/17, taking the total number of life insurers to 19 from nine. As of mid-July 2020, the company has been in operations with 90 outlets and 10,463 individual agents, and 25 corporate agents spread across the nation for procuring new business and extending after-sales services.

The company posted a net profit of Rs. 3.09 crores in the first quarter of the fiscal year 2077/78.