Introduction :
Sun Nepal Life Insurance Company Limited is set to release 76,80,000 units of its Initial Public Offering (IPO) shares starting from the 32nd of Shrawan, 2080. The IPO’s early closing date is scheduled for the 4th of Bhadra. If the subscription falls short, an extension until the 14th of Bhadra, 2080, is possible.
The company’s issued capital stands at Rs. 3.2 Arba, with 30% of it, equivalent to 96,00,000 unit shares, designated for the general public and Nepalese citizens working abroad. Among the total IPO shares, 10% (960,000 units) were offered to Nepalese citizens employed overseas between the 1st and 15th of Shrawan.
The remaining 86,40,000 units are allotted to the general public, including company employees and mutual funds, starting from the aforementioned dates.
Sun Nepal Life Insurance IPO Details
| Key Information | |
|---|---|
| Issued Capital | Rs. 3.2 Arba |
| Number of IPO Shares | 76,80,000 units |
| Issue Price | Rs. 239 per share |
| Opening Date | 32nd Shrawan, 2080 |
| Early Closing Date | 4th Bhadra, 2080 |
| Extended Closing Date (if needed) | 14th Bhadra, 2080 |
| Issued to Public | 96,00,000 units |
| Issued to Nepalese Citizens Abroad | 960,000 units |
| Issued to General Public | 76,80,000 units |
| Reserved for Mutual Funds | 480,000 units |
| Reserved for Employees | 480,000 units at Rs. 100/share |
| Total IPO Proceeds | Rs. 2.22 Arba |
| Premium Amount | Rs. 1.26 Arba |
| Paid-up Capital Contribution | Rest of the amount |
Out of the total of 86,40,000 units, 5% (480,000 units) have been reserved for mutual funds, while another 5% (480,000 units) have been set aside for company employees at a rate of Rs. 100 per share. The remaining 76,80,000 units are available for the general public.
The IPO shares will be priced at Rs. 239 each, consisting of a Rs. 100 face value and a Rs. 139 premium price.
Nepal SBI Merchant Banking has been selected as the issue manager for the IPO. The anticipated proceeds from the IPO will amount to Rs. 2.22 Arba. Out of this, Rs. 1.26 Arba will be allocated as the premium amount, while the remainder will contribute to the paid-up capital.
Company Information
| Company Name | Sun Nepal Life Insurance Company Limited |
|---|---|
| License Date | August 2, 2017 |
| Products | Money Back, Endowment, Whole Life, Term Assurance, etc. |
| Branches | 21 branches, 56 sub-branches |
| Insurance Agents | 15,838 agents |
Sun Nepal Life Insurance Company Limited, a life insurance provider, received its license from the Insurance Board on August 2, 2017. The company offers a diverse range of insurance products, including Money Back, Endowment, Whole Life, and Term Assurance products, through an extensive sales network. As of mid-December 2019, the company boasts a network of 21 branches (including the head office), 56 sub-branches, and 15,838 insurance agents.
CRNL has assigned a ‘CARE-NP IPO Grade 4’ rating to the proposed IPO of Sun Nepal Life Insurance Company Limited, indicating below-average fundamentals. The company’s earnings per share (EPS) stands at 15.72, its net worth per share is 158.41, and its retained earnings are at 395.40 million.
IPO Grading
| Grading | CARE-NP IPO Grade 4 (Below Average Fundamentals) |
|---|---|
| Earnings Per Share (EPS) | 15.72 |
| Net Worth Per Share | Rs. 158.41 |
| Retained Earnings | Rs. 395.40 million |