Things to Know Before Applying for IPO of Guardian Micro Life Insurance; IPO Opens Today For General Public
Sun, Jan 5, 2025 8:34 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Guardian Micro Life Insurance Limited, established on December 26, 2022, began operations as a Micro Life Insurance Company on July 7, 2023, following its license approval on April 10, 2023, under the Insurance Act 2079. Headquartered in Biratnagar Municipality, Morang, Nepal, GMLIL offers diverse micro-life insurance products through an extensive sales network, including term plans, endowment plans, and group plans. As of mid-July 2024, the company reported a paid-up capital of Rs. 525 million and total assets amounting to Rs. 562 million.
About the issue:
Guardian Micro Life Insurance Limited is opening the IPO issue to the general public from today i.e. on the 21st of Poush, 2081 till the 24th of Poush, 2081. The issue can be extended to the 6th of Magh, 2081 if it is not fully subscribed.
Out of the total 22,50,000 units; 10% i.e. 2,25,000 units have already been issued to Nepalese citizens working abroad, whereas 3% i.e. 67,500 units have been set aside for the employees of the company and 5% of the total offered shares i.e. 1,12,500 units have been set aside for the mutual funds. The remaining 18,45,000 units are for the general public.
Kumari Capital Limited is appointed as the issue manager. Applications can be placed for a minimum of 10 units and a maximum of 1,000 units.
Guardian Micro Life Insurance
|
Particulars |
Percentage |
Units |
Amount |
|---|---|---|---|
|
Total Capital |
100% |
75,00,000 |
75,00,00,000 |
|
Total Issue (General Public) |
30% |
22,50,000 |
22,50,00,000 |
|
Issue Manager |
Kumari Capital Limited |
|
|
|
Issue Open Date |
21st Poush |
|
|
|
Issue Closing Date (Earliest) |
24th Poush |
|
|
|
Issue Closing Date (Late) |
6th Magh |
|
|
|
Minimum Application |
10 units |
|
|
|
Maximum Application |
1,00,000 units |
|
|
Capital Structure:
|
Authorized Capital |
80,00,00,000 |
|
Issued Capital |
75,00,00,000 |
|
Current Paid-Up Capital |
52,50,00,000 |
|
Capital after IPO Issuance |
75,00,00,000 |
Shareholding Structure
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|---|---|---|---|---|
|
Promoters |
52,50,000 |
52,50,00,000 |
70% |
Already issued |
|
General Public |
22,50,000 |
22,50,00,000 |
30% |
To be issued |
|
Total |
75,00,000 |
75,00,00,000 |
100% |
|
Board of Directors:
|
Name |
Position |
|---|---|
|
Mr. Udeep Shrestha |
Chairman |
|
Dr. Jay Prakash Jaiswal |
Director |
|
Mr. Udaya Narayan Bhattarai |
Director |
|
CA Trishila Jhunjhunwala |
Director |
|
Pramod Prasad Bhattarai |
Director |
Management Team:
|
S.N. |
Name |
Position |
|---|---|---|
|
1. |
Chirayu Bhandari |
Chief Executive Officer |
|
2. |
Jyoti Prakash Pandey |
Deputy Chief Executive |
|
3. |
Kailash Devkota |
Chief Manager |
|
4. |
Sunita Koirala |
Chief Manager |
|
5. |
Ram Prasad Poudel |
Company Secretary |
|
6. |
Samir Kharel |
Manager |
|
7. |
Deelip Sharma |
Manager |
|
8. |
Jeevan Rai |
IT- Head |
Uses of funds:
|
S.N. |
Particulars |
Amount |
|---|---|---|
|
1. |
Fixed deposits issued by banks and financial institutions |
22,30,00,000 |
|
2. |
Branch expansion and enhancement of physical infrastructure deposit |
20,00,000 |
|
Total |
22,50,00,000 |
|
Financial Highlights:
|
Financial Highlights |
|||||
|---|---|---|---|---|---|
|
Particulars |
Actual |
|
Estimated |
||
|
2079/080 |
2080/081 |
2081/082 |
2082/083 |
2083/084 |
|
|
Total Paid-Up Capital ('000) |
5,25,000 |
5,25,000 |
7,50,000 |
7,50,000 |
7,50,000 |
|
Reserve & Surplus ('000) |
1,796 |
3,079 |
9,431 |
19,240 |
30,820 |
|
Net Profit ('000) |
5,26,796 |
5,28,079 |
7,59,461 |
7,69,240 |
7,80,820 |
|
Earnings per share (Rs.) |
0.34 |
0.25 |
0.85 |
1.30 |
1.54 |
|
Net worth per share (Rs.) |
100.34 |
100.59 |
101.26 |
102.57 |
104.11 |
|
Return on Equity (%) |
0.34% |
0.25% |
0.84% |
1.27% |
1.48% |
CARE Ratings:
CARE Ratings Nepal Limited (CRNL) has assigned an issuer rating of ‘CARE-NP BB- (Is)’ to Guardian Micro Life Insurance Limited (GMLIL). This rating indicates a moderate risk of default concerning the timely servicing of financial obligations in Nepal.
Key Rating Strengths:
- Experienced board and management team
- Moderate geographical coverage through branches, sub-branches and agency network
- Adequate reinsurance arrangement and satisfactory quality of investment book
Key rating Weakness:
- Small scale and short track record of operations: premium concentrated towards micro term policies
- Competition from other established insurance companies
- Exposure to Regulatory Risk
