The Nepal Insurance Authority has granted permission to transform the Rastriya Beema Sansthan into a public entity, issuing an IPO to the general public in the name of Rastriya Jeewan Beema Company Limited. With this transition, the regulatory authority has informed that an Initial Public Offering (IPO) must be released.
According to Clause 44 of the law, the company is required to sell at least 30% of its total issued capital to the general public within one year. Currently, the institution has a paid-up capital of Rs.18.10 Crores. The government holds a 27.78% stake, the Nepal Rastra Bank holds 55.55%, and the Nepal Bank holds 16.67%.
Previously, Rastriya Beema Sansthan benefited from a provision that allowed it to fulfill the minimum capital requirement. However, following the removal of the institution from the insurance law and its subsequent transformation into a public company, the regulatory authority has now emphasized the establishment of a minimum capital requirement.
The regulatory authority has specified six conditions for the institution. These conditions include starting life insurance operations in the name of the Rastriya Jiwan Beema Company Limited within six months, achieving a capital of Rs. 5 Arba within one year, submitting financial statements, property valuation, and liability assessment reports of previous economic years within six months, and updating the company's financial information related to property clarification and risk management policies within one month.
The company is also required to comply with the guidelines issued by the regulatory authority and other conditions imposed during the transformation process.