Reliable Nepal Life Insurance IPO Allotment Concludes, Almost 4 Lakh Applicants Returned Empty Hand

The IPO allotment of Reliable Nepal Life Insurance Limited (RENLICL) is concluded today at the premises of Civil Capital Market Limited, Sundhara, Kathmandu. 

Reliable Nepal Life Insurance Limited (RENLICL) issued 96,00,000 unit IPO shares of Rs 100 face value with a premium of Rs 157 added to the total price of Rs 257 per share to the general public from 18th to 22nd Shrawan, 2080.

The Insurance company had issued 1.20 Crore units worth Rs. 2.92 Arba including the premium amount, which is 30% of the issued capital of Rs. 4 Arba. Out of this, 10 percent i.e. 12 lakhs shares have been issued and distributed to Nepalese citizens who are employed abroad after obtaining labor approval from the relevant agencies of the Nepal government.

Similarly, 5 percent of the total shares i.e. 6 lakhs shares have been allocated to mutual funds and 5% i.e. 600,000 shares for the employees of the company (at the rate of Rs. 100 per share). General investors can apply for the remaining 96 lakh shares.

The issue had received applications from 13,56,836 valid applicants who had applied for a total of 1,59,30,010 units. The issue was oversubscribed by more than 1.66 times. 

As per the allotment module, a total of 9,60,000 applicants were allotted 10 units each via lottery system and the remaining 3,96,836 applicants were returned with empty hands. 

In total 7,517 applicants who applied for 1,24,150 units were disqualified.

Allotment Module:

The IPO result can be accessed by CDSC IPO Result, MeroShare, and Civil Capital Limited.

 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.