Reliable Nepal Life Insurance Closing IPO To General Public From Today

August 11, 2023 | Investopaper

Reliable Life Insurance Company IPO

After the first phase, Reliable Life Insurance Company Limited is currently floating 1,08,00,000 shares (at a price of Rs 257 per share) in the second phase of the Initial Public Offering (IPO). The second phase of the IPO is open from Shrawan 23, 2080 BS.

Due to over-subscription of shares, the public offering will close on Shrawan 26, 2080 BS.

Interested investors can apply for a minimum of 10 shares and the maximum of 5,400 shares.

Out of the total shares, 6,00,000 shares are allotted to the mutual fund schemes. Likewise, 6,00,000 shares are the reserved for the employees of the company (@ Rs. 100 per shares). Hence, the general public can participate in the remaining 96,00,000 shares.

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Upcoming Initial Public Offerings (IPO) In Nepal

First Phase: IPO To Foreign Employed Nepalis

In the first phase of the IPO, the life insurance company had sold shares to the Nepalis in Foreign Employment from Ashad 27, 2080 BS. The company had issued 12,00,000 shares at a price of Rs 257 per share in the first phase (10 percent of the general’s public quota). The face value of each share is Rs 100 while Rs 157 is the premium.

The IPO to foreign employed Nepalis was closed on Shrawan 10, 2080 BS.

In total (including first and second phase), it will issue 1,20,00,000 unit shares in the IPO at a price of Rs 257 per share. The face value of each share is Rs 100 while Rs 157 is the premium. Hence, the total public issue amounts to Rs 298.98 crores.

For this purpose, Securities Board of Nepal (SEBON) has given permission to the company on Ashad 15, 2080 BS. The company had submitted an application to the board on Shrawan 12, 2078 BS for the IPO issuance.

Civil Capital Market Limited is the issue manager for the IPO.

After the IPO, the general public will possess 30 percent ownership in the company while the promoters will hold the remaining 70 percent shares.

About Reliable Life Insurance Company

Reliable Life Insurance Company was registered in Mangsir 18, 2064 BS. It started the life insurance operation from Bhadra 15, 2074 BS.

As of Chaitra’s end 2079 BS, the company has a paid-up capital is Rs 2.80 Arba. After the IPO, if fully subscribed, the paid-up capital will increase to Rs. 4 Arba.

Udaya Nepali Shrestha is the chairman of the company.

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