Rabindra Dhungel, 28 september 2020. The initial public offering (IPO) of General Insurance Company Limited, which has been open for sale since Sunday, has received 17 percent more applications than the demand. The company will sell 3 million ordinary shares at a face value of Rs 100 per share.
Out of which, 2.7 million shares have been issued by the company to the public. But by 5 pm on Sunday, 95,850 applications had been received for 3,197,500 lots, according to AIBL S Capital, the company’s sales manager. This is a demand application for four lakh 67 thousand five hundred lots (17.12 percent) more shares than issued. Out of the total 3 million ordinary shares, the company has allotted 120,000 shares for its employees and 150,000 shares for collective investment funds. Applications have been opened for the general public for the remaining 2.73 million shares.
Applications can be submitted for a minimum of 10 to a maximum of 10,000 lots in the company’s IPO. The application period has been fixed till September 30. At present, the authorized capital is Rs 2 billion and the issued capital is Rs 1 billion. The company’s paid-up capital will reach Rs 1 billion after selling 30 percent shares to the general public, employees and collective investment funds.
Investors will be able to apply online through My Share’s website as well as from all banks and financial institutions that have availed the ASWA facility. General Insurance, which had a net worth of Rs 104.02 per share in FY 2076/77, has projected to increase it to Rs 115.19 in the current fiscal year.
The non-life insurance company had earned a net profit of Rs 56 million by the end of last fiscal year by earning Rs 209.6 million in insurance premiums. The company’s annual earnings per share for the period was Rs 7.23. The company has accumulated Rs 46.6 million in the reserve fund.