IPO of Sanima Life Insurance Company Limited

Sanima Life Insurance Company Limited was incorporated in Mangsir 2064 under Company Act 2063. Formally, they started their business on 2074/08/22. This insurance company is promoted by the Non-Residents Nepalese (NRN). All investors have experience and investment in different businesses in Nepal such as banking, finance, hydropower, and tourism sector.

Also, Sanima bank is the major promoter of the Sanima life Insurance Company Limited. To promote the domestic business and for healthy scientific management of risk Sanima insurance has made re-insurance with Nepal Reinsurance Company.

Sanima Life insurance’s authorized capital is Rs 300 crore and Issued and Paid-up-capital is Rs 140 crore. Recently, Beema Samiti made the provision about paid-up capital of life insurance. So, to meet the provision they are issuing an Initial Public Offering (IPO) of Rs 60 crore to the public.  

The vision and mission statement of the company is to become the largest and trustworthy life insurance company with continuous innovation, financial security, long term prosperity through good returns and services.

There are 6 members of the Board members committee in Sanima Life including the chairman, 4 directors,s and 1 company secretary. As well as they have 6 members of a dynamic and intelligent management team. They have 10 different insurance products for all age groups with high security. Currently, Sanima insurance has 118 branches all over Nepal.

Sanima Life Insurance Company IPO Details:

Sanima life insurance is going to issue its shares to the public. All the information regarding Initial Public offering (IPO) are as follows:

IPO Open Date:2078 Sharwan 20 (B.S)
IPO Close Date (Early):2078 Sharwan 24 (B.S)
Close Date (Late):2078 Bhadra 02 (B.S)
Minimum Quantity Require to Apply:10 Unit
Maximum Quantity can apply:30000 Unit
Price Per Share:Rs. 100
Total number of shares for the general public: 54,00,000 Unit shares
Number of shares for their employees:3,00,000 Unit shares
Total number of shares for mutual funds:3,00,000 Unit shares
Company Category:Life Insurance Company 
CARE NP rating:BBB- (Moderate degree of safety regarding timely servicing of financial obligations)
Share Issue Capital: Prabhu Capital Limited
How to apply for shares?Mero share Application & C-ASBA form

So, all the above IPO details are important to apply for the share. According to the past data, the number of shares applied was always oversubscribed by 4,5 or even 10 times. So, you can apply just 10 shares.

Company Details:

 Sanima Life insurance was established almost 4 years ago and already make a positive impact in the Nepalese insurance business sector. They have the financial indicator which proves that they are leading this sector. The major financial indicators are as follows:

Financial Indicators2073/0742074/0752075/0762076/077 (Unaudited)2077/078 (Expected)2078/079 (Expected)2079/080 (Expected)
Net worth per Share Rs(41.16)99.11103.17109.67116.74121.73139.33
Earnings per Share(64.20)(0.76)3.916.106.739.7817.11
Networth Return %(155.97)(0.76)3.795.565.778.0312.28
Profit/Loss Rs ‘000’(1799.96)(13548.99)19,640.23104,860.10174,487.69344,675.07643,319.45

Capital Structure of Sanima Life Insurance company Limited

Capital2074/0752075/0762076/0772077/078
Authorized Capital3,000,000,0003,000,000,0003,000,000,0003,000,000,000
Issued Capital2,000,000,0002,000,000,0002,000,000,0002,000,000,000
Paid-up-capital1,400,000,0001,400,000,0001,400,000,0001,400,000,000

So, the company is going to issue the shares to reach their provision and make paid-up-capital Rs 2,000,000,000. Therefore, after issuing the IPO the company’s paid-up capital will be:

ShareholdersNumber of SharesPercentagePaid-up Amount
Promoter Shareholders1,40,00,000701,40,00,00,000
General Shareholders60,00,0003060,00,00,000

Conclusion

Finally, from all the above information Sanima Life insurance Company Limited is good to invest in the primary market. After issuing shares, they allot shares to the investor. After allotment, the shares will be listed in the secondary (NEPSE) market.

It is going to allotment of share with the lucky draw because there are more than 20 lakh people who applied previously in insurance company IPO. Therefore, I recommend and suggest everyone apply 10 unit of shares and if you get those shares hold for at least Rs. 1000 per share.

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