Guardian Micro Life Insurance’s IPO proposal is approved by SEBON on November 24 (9th Mangsir). The board approved the issuance of 75 lakh shares, of which 30% (22 lakh 50 thousand shares) will be issued to the general public, while the founding group will hold the remaining 70%.
The IPO release date for Guardian Micro Life Insurance will be announced soon. The IPO will be issued in two phases:
- In the first phase IPO will be issued for Nepalese citizens living abroad
- Following the successful allotment in the first phase, the company will proceed with the second phase, issuing the IPO for the general public in Nepal.
The company has separated 22,50,000 shares i.e. 30% of 75 lakh shares worth 22 Crore 50 lakh for the general public at a rate of Rs 100 per share. These 22,50,000 shares are planned to be distributed in the given way:
- 10% of 22,50,000 shares i.e. 2,25,000 units shares worth 2 crores 25 lakh is reserved For Nepalese Working Abroad which is open from today.
- 82% 22,50,000 shares i.e. 18,45,000 unit shares will be opened to the General Public.
- 5% of 22,50,000 shares i.e. 1,12,500 unit shares is reserved For Mutual Funds.
- 3% of 22,50,000 shares i.e. 67,500 unit shares are separated for company employees.
Key Details:
According to a member of the securities board, there is a provision for the microinsurance company in Nepal that Microinsurance companies must issue an IPO of at least 30 percent to the general public. Guardian Micro-Life Insurance has met all the necessary criteria, which led to the approval of its IPO issuance on the same day, the recommendation committee shortlisted the names of three candidates for the SEBON chairman position. Among the shortlisted candidates the new chairman of SEBON will be appointed.
Seven companies have received approval from the Insurance Authority to operate microinsurance services in Nepal. Among these, three are life microinsurance companies, and four are non-life microinsurance companies.