IPO of These 3 Companies Are in SEBON's Pipeline

Union Life Insurance Company Limited has submitted an application to the regulatory board to issue an IPO for 64,50,000 units. The application was submitted on Jestha 09. Prabhu Capital has been appointed the issue manager for the IPO issue.

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

The insurance company has posted a net profit of Rs 82.50 million and published its 3rd quarter company analysis of the fiscal year 2077/78.

Similarly, Sanima Life Insurance Limited has also submitted its application to issue 60,00,000 shares via an IPO. The application was submitted on Jestha 09. Prabhu Capital has been appointed the issue manager for the IPO issue.

Sanima Life Insurance Limited was incorporated under the Companies Act, 2063 on 2064/08/13. Beema Samiti awarded the operating license on 2074/05/07 as per Sub-clause 3 of Clause 10 of Insurance Act, 2049 and Sub-rule 1 of Rule 8 of Insurance Regulations, 2049 to conduct the business of Life Insurance and the company started its commercial operations on 2074/08/22. Promoted by Non-Residents Nepalese (NRN), who have an investment in Finance, Banking, Hydropower, and Tourism, etc in Nepal, Sanima Life Insurance aims to be a trusted name in the Life Insurance Sector of Nepal. Sanima Bank is the major promoter of Sanima Life Insurance Limited.

The authorized capital of the company is NRs 300 crore and the Issued and Paid-up Capital is NRs 140 crore. As per the regulatory provision, Sanima Life will issue an IPO of NPR 60 crore, after which paid-up capital will be 200 crores. 70% of issued capital has been subscribed by the promoters and 30% of the issued capital will be allotted to the public through IPO as per regulation in this regard.

Sanima Life Insurance Limited has posted a net profit of Rs 93.68 million during the 3rd quarter of the fiscal year 2077/78.

A hydropower company, Upper Hewakhola Hydropower Company Limited, has also submitted its own application to SEBON to issue 20,00,000 shares to the public. NMB Capital has been appointed the issue manager. The application was submitted on Jestha 02.

The hydropower company has a mission to identify different sizes of hydropower projects in Nepal, study and develop them; construct projects in peoples’ participation; generate, operate and own the projects and share benefits to the people.

It has one project under its radar: the Upper Hewa Khola Small Hydropower project. It is a run-of-river type of project located in the Sankhuwasava district at Siddhapokhai and Jaljala VDCs. The location is just upstream of the existing and operational Hewa Khola Small Hydropower Project, 4.5MW, which was developed by Barun Hydropower Company Ltd.

The same developers are going to construct this project with an installed capacity of 8.5 MW.