Guardian Micro Life, Nepal’s first micro insurance company, is set to open its initial public offering (IPO) for the general public starting from Poush 21.
The company has received approval from the Securities Board of Nepal to issue an IPO worth NPR 225 million, which is 30% of its total paid-up capital of NPR 750 million. In the first phase, the company sold IPO shares worth NPR 22.5 million, or 10% of the total approved shares, to Nepalis working abroad from Mangsir 19 to Poush 3.
Guardian Micro Life IPO Information
| Information | Details |
|---|---|
| Company Name | Guardian Micro Life |
| IPO Opening Date for General Public | Poush 21 |
| IPO Approval Amount | NPR 225 million |
| Total Paid-up Capital | NPR 750 million |
| Employee Shares | 67,500 shares (3%) |
| Mutual Funds Shares | 112,500 shares (5%) |
| General Public Shares | 1,845,000 shares |
| Application Deadline | Poush 24 (extendable to Magh 10 if necessary) |
| Minimum Application | 10 shares |
| Maximum Application | 100,000 shares |
In the second phase, the company will offer 67,500 shares (3%) to its employees, 112,500 shares (5%) to mutual funds, and the remaining 1,845,000 shares to the general public. Applications for the IPO can be submitted until Poush 24. However, if there are not enough applications by this date, the application process will be extended until Magh 10.
Investors can apply for a minimum of 10 shares and a maximum of 100,000 shares. Applications can be submitted through Kumari Capital, banks and financial institutions that provide C-ASBA services, and the CDSC’s Mero Share online system.
The issuance of the IPO aims to raise funds to support the company’s expansion plans and enhance its services. Guardian Micro Life is focused on providing accessible and affordable insurance products to underserved communities in Nepal, ensuring financial protection and security for its clients.
By opening the IPO to the general public, Guardian Micro Life is not only raising capital but also promoting wider ownership and participation in the company. This move is expected to strengthen the company’s financial base and enable it to reach more people with its microinsurance products.
The company’s decision to initially allocate IPO shares to Nepalis working abroad reflects its commitment to including the diaspora in the country’s financial and economic activities. This inclusion helps in channeling remittances into productive investments and contributes to the overall economic growth of Nepal.
Guardian Micro Life’s initiative is a significant step towards the development of the microinsurance sector in Nepal, which has the potential to provide crucial support to low-income families and individuals. The success of this IPO could pave the way for more innovative financial products and services in the country’s insurance market.