IPO allotment of Sanima General Insurance concludes; lucky 2,73,000 investors get 10 units each and remaining 5,90,545 applicants return empty hand

The IPO allotment of Sanima General Insurance Limited is allotted today (Ashwin 30) at the premises of NIC Asia Capital Limited.

Sanima General Insurance Limited has issued of 30,00,000 units ordinary shares worth Rs 30 crore to the general public from Ashwin 21- 25, 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.

The issue had received applications from 8,63,545 valid applicants who had applied for a total of 1,85,29,240 units. The issue was oversubscribed by 6.81 times. In total 3,360 invalid applicants applied for 62,280 units. 

As per the allotment module, a total of 2,73,000 applicants were allotted 10 units each via lottery, and the remaining 5,90,545 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 company CEO thanked all the applicants for applying for this IPO. Furthermore, he ensured that the company will fulfill the expectations set by the investors on company management.

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. 

Sanima General Insurance's profit has increased by 53.41% to Rs. 5.56 crores in the fourth quarter of FY 2076/77. 

CRNL has assigned the ‘CARE-NP BB+  (Is)’ rating to Sanima  General  Insurance  Limited  (SGIC). Issuers with this rating are considered to offer a moderate risk of default regarding timely servicing of financial obligations, in Nepal.

Sanima  General Insurance Limited (SGIC) is a general (non-life) insurance company. The company has started its operation on July  11,  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.  SGIC  is promoted by  Sanima  Group, which is promoted by a  group of Non-Resident Nepalese (NRN). Sanima  Group has investments across different sectors including Commercial   Bank,   Life   Insurance   Company,   Merchant   Banking, and hydropower companies. SGIC  has a network of  18  branches  (including head office),  10  sub-branches supported by  93  employees, and  208  insurance agents as of Mid-January  2020.  SGIC  has an asset base of  Rs.  877  Mn as on  July  16, 2019, which witnessed 20.65% growth over FY18. The capital structure of the company comprises of Rs. 700Mn as paid-up capital from the promoter group and the  Rs. 300 Mn is proposed to be issued to the public through IPO.