Oversubscribed Jyoti Life Insurance IPO, 1.8 Million Applied

Mar Wed 2021 08:57:04

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Oversubscribed Jyoti Life Insurance IPO, 1.8 Million Applied

Kathmandu. More than 1.8 million people have applied for the initial public offering (IPO) issued by Jyoti Life Insurance. Which is  the highest application in the history of Nepal.

Till the last day of IPO issuance, 18 lakh 4 thousand 348 applicants have applied for 38 million 57 thousand 710 lots in the IPO of the company. The company has 6.40 times more applications than the public demand. As all the data from all C-ASWA member banks and financial institutions have not been updated so far, this may increase.

The company has issued 6.6 million IPOs with a face value of Rs. Of which, 5 percent or 333,000 employees and 5 percent collective investment funds have been secured. And, the remaining 59.40 million shares have been sold to the public.

NMB Capital is the manager of the share issue and sale of the company. Similarly, Care Rating Nepal has given Care NP Triple B Issuer rating to Insurance for IPO issuance. Which indicates a mid-level secure company that is able to meet its financial obligations on time.

At present, the paid-up capital of the insurance company is Rs 1.54 billion. The company's paid-up capital will reach Rs 2.20 billion after the IPO distribution of Rs 660 million.

The company has earned a total of Rs 1.44 billion in premiums till the second quarter of the current fiscal year and has made a net profit of Rs 107.8 million. The company has accumulated Rs 2.91 billion in the life insurance fund and Rs 482.4 million in the reserve fund. The company has a total investment of Rs 4.17 billion and earnings per share of Rs 14.