Sun Nepal Life Insurance Company IPO Allotment Concludes; 7,68,000 Applicants Celebrate; 6,92,061 Applicants Return Empty-Handed
Fri, Sep 1, 2023 8:47 AM on IPO/FPO News, Latest,
The IPO allotment of Sun Nepal Life Insurance Company Limited is concluded today at the premises of issue manager Nepal SBI Merchant Banking Limited, Kathmandu.
Sun Nepal Life Insurance Company Limited had issued 76,80,000 unit IPO shares at Rs. 239 per share (Rs 100 face value + Rs 139 premium price) to the general public from Sharwan 32 to Bhadra 4, 2080.
The issued capital of the life insurance company is Rs. 3.2 Arba of which 30% i.e. 96,00,000 unit shares are for the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 960,000 unit shares were issued to Nepalese citizens working abroad from 1st Shrawan to 15th Shrawan.
The remaining 86,40,000 units will be issued to the general public (including employees of the company and mutual funds) from the mentioned date above.
Out of the total 86,40,000 units; 5% i.e. 480,000 units have been set aside for the mutual funds while 5% or 480,000 units have been set aside for the employees of the company (at the rate of Rs. 100 per share). The remaining 76,80,000 units are for the general public.
The issue had received applications from 14,60,061 valid applicants who had applied for a total of 16,358,210 units. The issue was oversubscribed by more than 2.13 times.
As per the allotment module, a total of 7,68,000 applicants were allotted 10 units each via lottery and the remaining 6,92,061 applicants were returned with empty hands.
A total of 480,000 units were allotted to the mutual funds and out of 480,000 units were allotted to the employees of the company.
Allotment Module:
The IPO result can be accessed by CDSC IPO Result, MeroShare, and Nepal SBI Merchant Banking.
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 will be added to the paid-up capital.
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.
