Nepal Life Insurance seeking approval from Sebon to float 30.96 lakh unit FPO shares; FPO price yet to be fixed

Nepal Life Insurance Company Limited (NLIC)’s 3,096,429 unit Further Public Offering (FPO) shares have been added in SEBON IPO/FPO pipeline for approval. Nepal Life Insurance Company 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. SEBON had formed a committee to manage, maintain transparency and retain uniformity in the price fixation of FPO. However NLIC has not presented required documents as such so there seems no any rigid decision regarding FPO price of NLIC. An official of Nepal Life Insurance Company said, “We have applied in the board for approval. The premium price will be decided by the Board and after the approval from SEBON we will be floating FPO.” Siddhartha Capital Limited has been assigned as the issue manager for the FPO issue. NLIC had earned net profit of Rs 24.04 crore in the fourth quarter of the last fiscal year 2072/73 as per unaudited report. The company has paid up capital of Rs 2.16 arba. Its last traded price (LTP) stood Rs 3,850 as on today in Nepse.