Nepal Micro Insurance Limited (NMIC) is set to launch its second phase of IPO for the general public in Nepal after successfully completing the first phase of IPO allotment for Nepalese working abroad. In this phase, NMIC will issue 1,845,000 unit IPO shares at a par value of Rs. 100 per share. The IPO will be open for subscription from 11th Falgun to 15th Falgun, 2081 (February 23, 2025). Below are the key details of the IPO::
1. IPO Details Breakdown
- Total IPO Shares: 22,50,000 units allocated for the distribution.
- 10% (2,25,000 units): Already issued IPO for Nepalese citizens working abroad.
- 3% (67,500 units): Reserved for employees of the company.
- 5% (1,12,500 units): Allocated for mutual funds.
- The remaining 18,45,000 units of IPO shares will be distributed to the general public.
- Issue Manager: NIMB Ace Capital Limited.
- Application Details:
- Minimum Application: 10 units.
- Maximum Application: 1,00,000 units.
2. Key Dates
- Issue Opening Date: 11th Falgun, 2081 (February 23, 2025).
- Early Closing Date: 15th Falgun, 2081 (February 27, 2025).
- Extension: If the issue is not fully subscribed, it can be extended up to 25th Falgun, 2081.
3. Company Overview
NMIC is a public limited company established on December 23, 2022. It received its license to operate as a Micro Non-Life Insurance Company on April 10, 2023, under the Insurance Act 2079, and officially started operations on May 14, 2023. The company’s registered office is in Bharatpur-1, Chitwan, with a provincial office in Gairidhara, Kathmandu. As of July 16, 2024, NMIC provides various micro non-life insurance products, including motor, property, burglary, and accident insurance. Financially, as of mid-July 2024, the company has a paid-up capital of Rs. 525 million and an asset base of Rs. 636 million.
4. Credit Rating
- Rating Agency: CARE Ratings Nepal Limited (CRNL).
- Issuer Rating: CARE-NP BB—(Is).
- Interpretation: This rating indicates a moderate risk of default in meeting financial obligations on time within Nepal.
How to Apply
- Eligibility: Nepalese citizens and institutions can apply for the IPO.
- Process: Applications can be submitted through C-ASBA (Centralized Application Supported by Blocked Amount) approved banks and financial institutions.
- Required Documents:
- Citizenship Certificate (for individuals).
- PAN Number (mandatory for all applicants).
Conclusion
Nepal Micro Insurance Limited (NMIC) is offering 18,45,000 unit IPO shares to the general public, providing an opportunity to invest in a growing micro non-life insurance company. With a par value of Rs. 100 and a CARE-NP BB—(Is) rating, NMIC presents a moderate-risk investment option. Interested investors are encouraged to apply between 11th Falgun, 2081, and 15th Falgun, 2081, through NIMB Ace Capital Limited, the appointed issue manager.