The trading of Nepal Life Insurance Company Limited (NLIC) will be halted in Nepse from June 12, 2016 (Sunday). Niraj Giri, Spokesperson of Securities Board of Nepal (SEBON) said, “ SEBON has issued directive to Nepse to halt the trading of Nepal Life Insurance Company.” Without seeking the approval from SEBON, the company published its price in Nepal Stock Exchange Limited (Nepse) and it seems it was done to create hype regarding the FPO, he added. The trading has been halted to carry out an investigation regarding the same, added Giri. Earlier NLIC 224^th Board of Director Meeting held on Jestha 26, 2073 has decided the price of Further Public Offering (FPO) which will be floated in the near future. The price has been set at Rs.2951 per Kitta. The premium added to the par value of Rs.100 is Rs.2851 per Kitta. The FPO is subject to approval from the concerned authorities. Vivek Jha, Chief Executive Officer of Nepal Life Insurance said, “ I have recently been informed about it, but I have not  received any letter from SEBON.” We will be providing clarification regarding the issue to SEBON, he added. The premium price has been fixed by an independent evaluator which has been passed by Board of Directors (BoD) of the company and we had mentioned in the notice that it needs to be approved by all the concerned regulatory body, added Jha. As per the third quarterly report of NLIC its net worth per share stands Rs 149 only. Also, the company has Rs 72 crore reserve. The paid up capital of the company is Rs 2.16 arba. The company has earned Rs 23.80 crore in Q3 of the current fiscal year. The company has not provided any reason for proposing such high premium price. The premium of Rs 2851 is way too much and based only on its secondary market price. It should be based on the real strength of the company.

30,96,429 units FPO of Nepal Life Insurance to be issued at Rs 2951 per unit; Reserve to increase by 8.8 arba; decision yet to be approved from regulators