Sun Nepal Life Insurance Company Closing IPO Issue for Nepalese Employed Abroad from Today; Oversubscribed by 1.75 Times So Far

Sun Nepal Life Insurance Company Limited is closing the issue of 9,60,000 unit IPO shares to Nepalese citizens working abroad from today i.e. on 15th Shrawan, 2080. The issue opened on 1st Shrawan.

The issued capital of the life insurance company is Rs. 3.2 Arba of which 30% i.e. 96,00,000 unit shares will be issued to the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 960,000 unit shares have been allocated for Nepalese citizens working abroad. The remaining 86,40,000 units will be issued later to the general public (including employees of the company and mutual funds).

The shares are being issued for Rs. 239 per share (Rs 100 face value + Rs 139 premium price).

Nepal SBI Merchant Banking has been appointed as the issue manager. The IPO issue will raise a total of Rs. 2.22 Arba for the company. Out of this Rs 1.26 Arba will be the premium amount and the rest would add to the paid-up capital.

According to CDSC, 26,474 applications have been received through Nepalese citizens working abroad for a total of 1,689,170 units. Thus, the issue is already oversubscribed by 1.75 times so far.

Sun Nepal Life Insurance Company Limited is a life insurance company that obtained its license from Insurance Board on August 2, 2017. The company has been offering an extensive range of products such as Money Back, Endowment, Whole Life, Term Assurance products, etc. through its diversified sales network. It has a branch network of 21 (including head office), 56 sub-branches, and 15,838 insurance agents as of Mid-Dec 2019.

Likewise, CRNL has assigned a grading of ‘CARE-NP IPO Grade 4’ to the proposed Initial Public Offer (IPO) of Sun Nepal Life Insurance Company Limited, indicating Below Average Fundamentals. SNLIC proposes to issue 60 lakh shares with a plan to raise Rs. 60 crores.

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