Nepal Life Insurance gets final approval to issue FPO; FPO Price set at Rs. 1,425 per unit

Securities Board of Nepal (SEBON) has given final approval to Nepal Life Insurance Company (NLIC) to float 30.96 lakh units Further Public Offering (FPO) shares. The Board has approved NLIC to issue FPO premium at Rs 1,425 (premium of Rs 1,325 added to the paid up value of Rs 100). The insurance company’s 16th Annual General Meeting (AGM) held on Jestha 7, 2073 had endorsed to issue 30.96 lakh unit FPO shares to its shareholders. The company  had applied in SEBON for approval on Ashwin 6, 2073. Earlier, NLIC 224^th Board of Director meeting held on Jestha 26, 2073 had decided the price of Further Public Offering (FPO). The company had announced to float 30.96 shares at Rs 2,951 each. SEBON, on Jestha 28 2073, had temporarily banned trading of Nepal Life’s shares on Nepal Stock Exchange (Nepse) after the company made its FPO plan public without obtaining the regulator’s permission. As per the Board’s procedure to fix FPO price, any company’s FPO price will be determined on the basis of the average market price of the company in the past, present and in the future as well. Any company issuing FPO should initially prioritize four aspects while applying in which capitalized income, Net Worth per Share, 180 days average market price and future prospect of cash flow on the basis of present share price should be considered. The FPO price should be fixed on the basis of the average calculation gained from these aspects. Siddhartha Capital Limited has been assigned as the issue manager for the FPO issue. NLIC had earned net profit of Rs 5.89 crore in the first quarter of the fiscal year 2073/74 as per its unaudited report. The company has paid up capital of Rs 2.16 arba. After this FPO, its paid up capital will reach Rs. 2.47 arba and the promoter-public shareholding will be 70:30. Its reserve will grow by Rs. 4.1 arba.