Sanima Life Insurance has issued an initial public offering (IPO) to the public from today (July 6, 2021). The company has issued 6 million units of shares equal to Rs 600 million, which is 30 % of the total issued capital of Rs 2 billion.
Out of 6 million units of shares, 5 % or 300,000 shares have been secured for the employees and another 5 % or 300,000 shares have been secured for the collective investment funds, and the remaining 5.4 million unit shares have been allotted to the public. Currently, the company’s paid-up capital is Rs 1.40 billion. The company’s paid-up capital will reach Rs 2 billion after the IPO.
Applications for the company’s IPO can be submitted by August 8 and if the shares are not subscribed within that period, the submission period will be extended till August 18.
Interested investors can apply through C-ASWA member banks and financial institutions and Meroshare’s web and app for a minimum of 10 lots to 30,000 lots.
Recently, the number of investors for IPO has reached 2.1 million. Therefore, the company’s IPO is sure to be oversubscribed and every investor will get 10 units of shares. As per this allotment procedure, only 540,000 people will get a minimum of 10 units of shares. Hence, it seems wise to apply for only 10 lots in the company’s shares.
Prabhu Capital is the IPO issuer and sales manager of the company, while Siddhartha Capital is the securities guarantor.
The company has been given an ICRP-IR triple B minus rating by the rating agency ICRA Nepal. This indicates that the company’s ability to bear responsibility is average.