IPO Allotted: Union Life Insurance Gets Highest Number of Applicants But Only 1 in Every 4 Applicants Get 10 Unit Shares on Meroshare

The IPO allotment of Union Life Insurance Company Limited is concluded at 5:00 PM at Indreni Foodland, New Baneshwor today.

Union Life Insurance Company Limited had issued 64,50,000 units worth Rs 64.50 crore as Initial Public Offering to the general public from (Ashad 24-28, 2078). 

Out of the offered 64,50,000 units; 5% of the total offered shares to the general public i.e. 3,22,500 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 3,22,500 units have been set aside for the mutual funds. The remaining 58,05,000 units are for the general public.

Prabhu Capital Limited is the issue manager for the IPO issuance.

The issue had received applications from 21,12,799 valid applicants who had applied for a total of 3,20,23,180 units. The issue was oversubscribed more than 5.51 times. 

As per the allotment module, a total of 5,80,500 applicants were allotted 10 units each via lottery; and the remaining 15,32,299 applicants were returned empty hands. 

A total of 3,22,500 units were allotted to the staff of the company and 3,22,500 units were allotted to mutual funds.

In total 4,801 applicants who applied for 64,750 units were disqualified.

Allotment Module:

The IPO result can be accessed by iporesult.cdsc.com.np, prabhucapital.com and http://meroshare.cdsc.com.np .

After the issuance of 64,50,000 units worth Rs 64.50 crore IPO shares the general public i.e 30% of total capital which will together raise its paid-up capital to Rs 2.15 Arba and the promoter/public ratio will be 70:30. 

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BBB (pronounced ICRA NP Issuer Rating triple B) to Union Life Insurance Company Limited (ULICL). Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations.

Union Life Insurance Company Limited (ULICL) is a public limited life insurance company (LIC), operating since July 2017. Its head office is in New Baneswor, Kathmandu. The company has an equity investment of multiple business houses in Nepal such as Jagadamba group, Golchha Organization, Gadiya group, Neupane group, Rajesh Hardware group & Tibrewala Group.

As of mid-July 2020, the major shareholders of ULICL include, Mr. Shekhar Golcha (~19.9%), Mr. Sahil Agrawal (~19.9%) Mr. Sulav Agrawal (~18%), Mr. Sandip Kumar Agrawal (~6.6%), Mr. Rahul Kumar Agrawal (~6.6%), and Mr. Sharad Kumar Tibrewala (~6.6%) among others.