Reliable Nepal Life Insurance To Issue IPO to General Public From Shrawan 23 at Premium Price

Reliable Nepal Life Insurance Limited (RENLICL) is going to issue an IPO at a premium. After the distribution of the IPO issued by the insurance company for the Nepalese who are employed abroad, now the IPO is going to be issued for the general public.

Insurance is going to issue shares at a face value of Rs 100 per share with a premium of Rs 157 added to the total price of Rs 257 per share.

Insurance is about to issue 1.20 Crore share 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.

Investors can apply for insurance shares from 23rd to 26th Shrawan. If the complete application is not received within that period, the issuance period will be extended until 5th of Bhadra. In the IPO of insurance, you have to apply for a minimum of 10 shares, and you can apply for a maximum of 5,400 shares.

Civil Capital Market is appointed as the issue manager. 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.