General Insurance Company Nepal issuing 30 lakh units IPO share to general public from Ashwin 11

General Insurance Company Nepal Limited will be issuing 30,00,000 units worth Rs 30 crore as Initial Public Offering to the general public from (Ashwin 11-14, 2077). The early closing date of this issue is on Asoj 14 and if the issue is not fully subscribed till Asoj 14, then it can be extended up to Asoj 25, 2077.

Out of the offered 30,00,000 units; 4% of the total offered shares to the general public i.e. 1,20,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 1,50,000 units have been set aside for the mutual funds. The remaining 27,30,000 units are for the general public.

NIBL Ace Capital Limited has been appointed as the issue manager for the IPO issuance.

Applications can be placed for a minimum of 10 units and a maximum of 10,000 units. 

After the issuance of 30,00,000 units worth Rs 30 crore IPO shares the general public i.e 30% of total capital which will together raise its paid-up capital to Rs 1 arba and the promoter/public ratio will be 70:30. 

The company’s profit had increased from Rs.3.62 crores to Rs.5.06 crores in the fourth quarter of the last fiscal year 2076/77. 

Care Ratings Nepal Limited has assigned the „CARE-NP BB+ (Is)‟ rating to General  Insurance  Company  Nepal  Limited  (GIC). Issuers with this rating are considered to have moderate risk of default regarding timely servicing of financial obligations, in Nepal. 

General  Insurance Company  Nepal Limited  (GIC)  is a  general  (non-life)  insurance company.  The company has started its operation on June 20, 2018. The company has been offering a range of general insurance covers for businesses  &  individuals and has a  comprehensive range of general insurance products for  Fire,  Marine,  Motor,  Engineering,  Miscellaneous and  Agriculture, etc. GIC  is promoted by institutional and individual promoters from different backgrounds.  The promoter group shares of the company are mostly held by Mrs. Babita Kumari Agrawal with 9.07% of total shares followed by Mega Bank Nepal Limited, “A” class financial institution (7.14%), and Deva Bikas Bank Limited, “B” class financial institution (7.14%). GIC has a network of 39 branches (including head office) supported by 178 employees and 171 insurance agents as of Mid-January 2020. GIC has an assets base of Rs.963 Mn as on July 16, 2019, which witnessed 31.52%  growth over  FY18. 

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