Reliance Life Insurance issuing 63 lakh units IPO shares to general public from Bhadra 4; high possibility of getting minimum 10 units for all applicants

Reliance Life Insurance Limited will be issuing 63,00,000 units worth Rs 63 crore as Initial Public Offering to the general public from (Bhadra 4, 2077). The early closing date of this issue is on Bhadra 8 and if the issue is not fully subscribed till Bhadra 8, then it can be extended up to Bhadra 22, 2077.

Out of the offered 63,00,000 units; 5% of the total offered shares to the general public i.e. 3,15,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 3,15,000 units have been set aside for the mutual funds. The remaining 56,70,000 units are for the general public.

Sanima Capital Limited has been appointed as the issue manager for the IPO issuance.

Applications can be placed for a minimum of 10 units and a maximum of 63,000 units. 

After the issuance of 63,00,000 units worth Rs 63 crore IPO shares the general public i.e 30% of total capital which will together raise its paid-up capital to Rs 2.10 arba and the promoter/public ratio will be 70:30. 

ICRA Nepal has assigned a grading of [ICRANP] IPO Grade 4, indicating below-average fundamentals, to the proposed initial public offering (IPO) of NPR 630 million of Reliance Life Insurance Limited (RLIL).

Earlier, the Insurance board gave an operating license to 10 Life insurance companies. Out of this Reliance Life Insurance set to become the first company to issue IPO to the general public. 

There are 19 life insurance companies in Nepal, out of this only 7 are listed in the NEPSE for trading purposes. 

Since the units offered to the general public is relatively high, there are high chances of getting a minimum of 10 units for all the applicants if total applicants are below 5.67 lakhs.

Click here for IPO offer letter: