August 28, 2020 | Investopaper
Reliance Life Insurance has alloted the IPO shares to the applicants on Bhadra 12, 2077. Within 4 days after the closing of the IPO issue, the company has made the allotment. Altogether, 589,464 people applied for the IPO shares. Of them, 1,955 applications have been rejected while 5,87,509 applications remained eligible.
According to Issue manager Sanima Capital, 20,509 people will not be alloted the shares in the IPO. Only 567,000 people got shares of the company when the eligible applicants were distributed at the rate of minimum 10 shares. The remaining 20,509 were left empty-handed.
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Reliance Life Insurance IPO
Reliance Life Insurance Company Limited issued the Initial Public Offering (IPO) from Bhadra 4, 2077. The IPO issue remained open until Bhadra 8, 2077. Due to oversubscription of shares, the issue was closed after the banking hours on Bhadra 8. If the issue had remained undersubscribed until this period, it would extend to Bhadra 22, 2077.
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The company floated 63 lakh unit shares in the IPO worth Rs 63 crores. Out of the total public issue, mutual funds will receive 5 percent or 3,15,000 shares. Likewise, the employees of the company will get to apply for the 5 percent or 3,15,000 shares. Thus, the general public will participate in the remaining 56,70,000 shares.
Interested investors can apply for a minimum of 10 units and a maximum of 63,000 units. The face value of each share is Rs 100.
Securities Board of Nepal (SEBON) provided the approval for the IPO on Shrawan 16, 2077. The company submitted application to Sebon for the IPO issuance on Ashad 9, 2077.
After the issue of the IPO, the general public will possess 30 percent ownership in the company. Likewise, the promoter will hold the remaining 70 percent shares.
ICRA Nepal Limited has provided ‘ICRANP-IR] BB+’ ratings to the company. This indicates moderate risk of default regarding timely servicing of financial obligations.
Sanima Capital Limited is the issue manager for the IPO.
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About Reliance Life Insurance Company
Reliance Life Insurance Company started its operation from Mangshir 1, 2074. The company is led by the Chief Executive Officer Mr Pravin Raman Parajuli.
Likewise, Mr. Tarachand Kedia is the chairman of the company.
Also Read: Upcoming IPO Of Insurance Company In Nepal
Financial Condition Of Reliance Life Insurance
Reliance Life Insurance Company has a current capital of Rs 1.47 Arba. After the issue of IPO, the capital will rise to Rs 2.10 Arba thereby meeting the minimum capital requirement for the life insurance companies in Nepal.
In the fiscal year 2076/77, the life insurance company has collected Rs 1.41 Arba in total premium. The company has made a total investment of Rs. 2.39 Arba. Reliance Life Insurance has earned Rs 4.34 crores in net profit.
The company has the total reserve of Rs 14 crores. Likewise, the life assurance fund stands at Rs 1.15 Arba.
Products Offered By Reliance Life Insurance
The company offers various insurance products to its customers which include:
1. Reliance Child Assurance Plan (Mero Mutu)
2. Reliance Endowment Assurance Plan
3. Reliance Money Back Assurance Plan
4. Reliance Endowment Assurance Cum Whole Life
5. Reliance Fixed Deposit Protection Plan
6. Reliance Term Plan (Jeevan Shanti)
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