Reliable Nepal Life Insurance Limited (RENLICL) to Allot IPO Shares

The Reliable Nepal Life Insurnce Limited (RENLICL) is set to allot its Initial Public Offering (IPO) to the general public today, Wednesday. The distribution will be managed by the company's issue manager, Civil Capital Market office, and will commence at 5 pm.

The latest data reveals a robust response, with a total of 1,477,877 applicants vying for a stake in 17,486,280 shares. This surge in applications represents a demand that is 1.82 times higher than the 9.6 million shares designated for the general public.

Given the overwhelming interest, and as stipulated by the Securities Issuance and Allotment Guidelines, the shares will be distributed in units of a minimum of 10 shares per applicant through a round-robin process. Accordingly, 960,000 individuals, eligible for the IPO, will each receive 10 shares.

The company had released 12 million shares at a price of Rs. 257 with an added premium of Rs. 157 per share, equating to a total value of Rs. 1.20 arba. This accounts for 30 percent of the overall issued capital, which stands at Rs. 4 billion.

Out of the total shares issued, 10 percent, or 1.2 million shares, were allocated for Nepalis engaged in foreign employment. An additional 5 percent, equivalent to 600,000 shares, was reserved for collective investment funds, while the same allocation was set aside for employees. The remaining 9,600,000 shares will be distributed among the general public.

With the issuance of these 12 million shares to the general public, the company's paid-up capital will be elevated to a total of Rs. 4 billion.