IPO allotment of Jyoti Life Insurance concludes; lucky 5,94,000 investors get 10 units each and remaining 12,03,835 applicants return empty hands

The IPO allotment of Jyoti Life Insurance Company Limited is concluded today i.e. 2077/12/13 in the premises of Jyoti Life Insurance Company Limited, Gyaneshwor at 12:30 P.M. 

Jyoti Life Insurance Company Limited has issued 66,00,000 units worth Rs 66 crore as Initial Public Offering to the general public from (Falgun 21- 26, 2077). 

Out of the offered 66,00,000 units; 5% of the issue i.e. 3,30,000 units have been set aside for the employees of the company and another 5% to mutual funds. The remaining 59,40,000 units are purely for individual investors. Investors can apply for a minimum of 10 units and a maximum of 66,000 units.

The issue had received applications from 17,97,835 valid applicants who had applied for a total of 3,58,99,360 units. The issue was oversubscribed by more than 6.04 times. 

As per the allotment module, a total of 5,94,000 applicants were allotted 10 units each via lottery, and the remaining 12,03,835 applicants were returned empty hands. 

A total of 3,30,000 units were allotted to the staff of the company and 3,30,00 units allotted to mutual funds.

Total rejected application from ASBA BFI's is 41,703 who had applied for 25,28,650 units. Whereas, 2,942 applicants who applied for 58,010 units were disqualified as per the issue manager.

The IPO result can be accessed by iporesult.cdsc.com.np.

When asked whether the company is planning to open a rights offering, the company CEO replied that any company has two ways to increase its capital structure: by issuing the right shares or by distributing bonus shares. The CEO then went on to clarify that the current financial scenario of the company allows it to issue bonus shares for capital increment if required.

Allotment Module:

The company has a total of 2.2 crore registered shares of which 66 lakh shares will be issued in the upcoming IPO. Thus, the IPO will raise a total of Rs. 66 crores in paid-up capital.

CARE Ratings Nepal Limited (CRNL) has assigned the ‘CARE-NP BBB (Is)’ rating to Jyoti Life Insurance Company Limited (JLIC). Issuers with this rating are considered to offer a moderate degree of safety regarding timely servicing of financial obligations, in Nepal. Such issuers carry moderate credit risk.

Jyoti Life Insurance Company Limited (JLIC) is a life insurance company registered at the Office of Company Registrar under the Company Act 2006 on May 17, 2017, and has obtained a license from Insurance Board on September 4, 2017. JLIC has been offering an extensive range of products as Money Back, Endowment, Whole Life, Term Assurance products, etc. through its diversified sales network. Currently, all the shares of the company are held by promoter shareholders. Major shareholders of the company are Mr. Nitesh Agrawal (18.18%), Ms. Usha Agrawal (18.18%), and NIC Asia Bank Limited (9.74%).