Conclusion of the Reliable Nepal Life Insurance IPO Allotment; over 4 lakh Applicants Received No Offers

Today at the Civil Capital Market Limited offices in Sundhara, Kathmandu, the Reliable Nepal Life Insurance Limited (RENLICL) initial public offering (IPO) allotment came to an end. 

From the 18th to the 22nd of Shrawan, 2080, Reliable Nepal Life Insurance Limited (RENLICL) issued 96,000,000 unit initial public offering (IPO) shares of Rs 100 face value with a premium of Rs 157 added to the total price of Rs 257 each share to the general public.

In total, 1.20 billion units worth Rs. 2.92 arba, or 30% of the Rs. 4 arba issued capital, were issued by the insurance firm. Out of this, 10%, or 12 lakh shares, have been allocated to Nepalese nationals working overseas after receiving labor approval from the appropriate government organizations in Nepal.

Similar to this, mutual funds received 5% of the entire shares, or 6 lakh shares, while the company's employees received 5% of the total shares, or 600,000 shares (at a price of Rs. 100 per share). The remaining 96 lakh shares are open to applications from all investors.

13,56,836 legitimate candidates submitted applications for the issue, requesting 1,59,30,010 units in total. The issue received more than 1.66 times its initial subscription. 

According to the allocation module, a total of 9,60,000 candidates received 10 units each through a lottery mechanism, while the remaining 3,96,836 applicants had their applications returned unanswered. 

7,517 out of the 1,24,150 applicants that applied were rejected.

The IPO result can be accessed by Share Hub, CDSC IPO Result, MeroShare, and Civil Capital Limited.

 CARE Ratings Nepal Limited (CRNL) has revised the issuer rating assigned to Reliable Nepal Life Insurance Limited to ‘CARE-NP BBB+ (Is)’ from ‘CARE-NP BBB (Is)’. Issuers with this rating are considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.

Reliable Nepal Life Insurance Limited is a life insurance company that was established on December 4, 2007, and received approval from the Insurance Board on August 2, 2017. It is registered with the Office of the Company Registrar under the Company Act of 2006. As of Mid-April 2023, the corporation had a network of 9 branches (including the headquarters), 69 sub-branch locations, and 28,655 insurance agents. As of Mid-April 2023, the company has an asset base worth Rs. 11,856 Mn. As of Mid-April 2023, the company's paid-up capital was Rs. 2,800 Mn.