July 16, 2021 | Investopaper
Union Life Insurance IPO Result
Prabhu Capital Limited, the issue manager for the initial public offering (IPO) of Union Life Insurance, has concluded the IPO allotment process on Thursday.
After the allotment, 580,000 applicants received 10 shares each. A total of 21,12,799 people had applied for the shares. Of them, 69,976 applications were disqualified with 20,42,823 eligible applicants. With the allotment, more than 15.27 lakh applicants were left empty handed.
To view the IPO result of Union Life Insurance, click the link below:
Union Life Insurance IPO
Union Life Insurance Company Limited issued Initial Public Offering (IPO) worth Rs 64.5 crores from Ashad 24, 2078 BS. Due to oversubscription of shares, the IPO issue was closed on Ashad 28, 2078 BS.
Securities Board of Nepal (SEBON) had provided the approval on Ashad 13, 2078 BS for the public offering. After SEBON’s approval, the company floated 64,50,000 unit shares in the IPO. At a face value of Rs 100, the IPO of Union Life Insurance was worth Rs. 64.50 crores.
Out of the total public issue, 3,22,500 shares (5 percent) were reserved for the employees of the company. Likewise, the mutual fund schemes received 3,22,500 shares (5 percent). Hence, the general public participated for the remaining 58,05,000 shares.
Interested investors could apply for a minimum of 10 shares and a maximum of 32,250 shares.
Prabhu Capital Limited was the issue manager for the IPO.
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About Union Life Insurance Company
Union Life Insurance Company was registered in 2074 BS. It received the license to operate as a Life Insurance company on Ashad 20, 2074 BS (April 7, 2017). The company is promoted by Jagadamba Group, Golchha Group, Gadiya Group, Neupane Group, Rajesh hardware & Tibrewala Group.
The company has an authorized capital of Rs 2.15 Arba. As of Chaitra’s end, 2077 BS, Union Life Insurance has a paid-up capital of Rs 1.505 Arba. The company will float the 30 percent share worth Rs 64.50 crores to the general public. Thus, the promoters will possess 70 percent ownership of the company after the IPO.
Mr. Sulav Agrawal is the chairman of the company.
After the issue of IPO, the capital will rise to Rs 2.15 Arba. This will meet the minimum capital requirement for the life insurance companies in Nepal (Rs 2 Arba), as directed by Beema Samiti.
Until the third quarter of the fiscal year 2077/78, the Union Life Insurance Company has collected Rs 5.24 Arba in total premium by selling 34,840 insurance policies. The company has made a total investment and loans of about Rs. 8.92 Arba. In the nine months period, the company has earned Rs 8.25 crores in net profit. Likewise, the life assurance fund stands at Rs 6.90 Arba.