Reliable Nepal Life Insurance Company Closing Issue of IPO Shares to Nepalese Citizens Working Abroad From Today
Wed, Jul 26, 2023 7:27 AM on IPO/FPO News, Latest,
Reliable Nepal Life Insurance Company Limited is closing the issue of 12,00,000 unit IPO shares to Nepalese Citizens working aboard from today i.e. on 10th Shrawan. The issue opened on 27th Ashad, 2080.
The issued capital of the life insurance company is Rs. 4 Arba of which 30% i.e. 1,20,00,000 unit shares will be issued to the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 12,00,000 unit shares is being issued to Nepalese citizens working abroad, whereas 5% i.e 600,000 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 600,000 units have been set aside for the mutual funds. The remaining 96,00,000 units will be later issued to the general public.
The shares will be issued for Rs. 257 per share (Rs 100 face value + Rs 157 premium price) to the general public and for the employees of the company at a par value of Rs. 100.
According to CDSC, 25,594 applications have been received through Nepalese citizens working abroad for a total of 18,52,530 units. Thus, the issue is already oversubscribed by 1.54 times so far.
Civil Capital Market is appointed as the issue manager. The IPO issue will raise a total of Rs. 2.98 Arba for the company. Out of this Rs 1.78 Arba will be the premium amount and the rest would add to the paid-up capital. The current paid-up capital of the company is Rs. 2.80 Arba.
CARE Ratings Nepal Limited (CRNL) has revised the issuer rating assigned to Reliable Nepal Life Insurance Limited to ‘CARE-NP BBB+ (Is)’ from ‘CARE-NP BBB (Is)’. Issuers with this rating are considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.
Reliable Nepal Life Insurance Limited is a life insurance company registered at the Office of Company Registrar under the Company Act 2006 on December 04, 2007, and obtained a license from Insurance Board on August 02, 2017. The company has a network of 9 branches (including head office), 69 sub-branches, and 28,655 insurance agents as of Mid-April, 2023. The company had an asset base of Rs. 11,856 Mn as of Mid-April 2023. The paid-up capital of the company stood at Rs. 2,800 Mn as of Mid-April, 2023.
