Sun Nepal Life Insurance Company IPO Distribution Set for Friday

The IPO issued by Sun Nepal Life Insurance Company Limited (SNLICL) at a premium price will be distributed on Friday. Nepal SBI Merchant Banking, the securities issuing and sales manager of the company, prepared for the IPO distribution on Friday.

According to the Securities Issuance and Allotment Guidelines 2074, 7 lakh 68 thousand lucky applicants will receive the company's IPO allocation. Due to the overwhelming number of applications exceeding the demand for the company's IPO, the guidelines stipulate that the IPO should be distributed at a minimum rate of 10 shares. Consequently, not all applicants will receive 10 shares, and investors will be selected through a round-robin process.

Remarkably, more than 15 lakh individuals have applied for the company's IPO. According to the final statistics from CDS and Clearing, 15 laks 80 thousand 490 people have applied for 1 crore 78 lakh 60 thousand 420 shares, valued at 4 Arba 26 crore 86 lahks 40 thousand 380 rupees. Based on this calculation, 7 lakh 68 thousand eligible applicants will receive IPO shares at the rate of 10 shares each, while 8 lakh 12 thousand 490 people will not receive any shares.

Earlier, Sun Nepal Life Insurance Company Limited had opened the issue of 76,80,000 unit shares to the general public from 32nd Shrawan, 2080. The early closing date of this issue was, i.e. 4th Bhadra.

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 had been issued to Nepalese citizens working abroad from 1st Shrawan to 15th Shrawan. The remaining 86,40,000 units were to 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 had been set aside for the mutual funds while 5% or 480,000 units had 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 shares had been issued for Rs. 239 per share (Rs 100 face value + Rs 139 premium price) to the general public.

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.