Jyoti Life Insurance: 1,200,000 deprived of IPO

KATHMANDU: Jyoti Life Insurance Company Ltd. is distributing public initial offerings (IPO) today.

The company had issued 6,600,000 units of shares worth Rs 660,000,000 at the rate of Rs 100 per unit of share from March 5.

A total of 1,842,496 people had applied for 8,486,220 units of shares, according to NMB Capital, the issue manager.

If the demands exceed than the number of shares issued, the shares should be allotted at the rate of 10 units of shares in line with the Section 29 (1) of Securities Issue and Allotment Guidelines, 2017.

If the IPOs are allotted accordingly, only 594,000 applicants out of 5,940,000 will obtain the primary shares, while the remaining 1,200,000 will go empty-handed.

Of the total IPOs issued, 333,000 (5%) units of shares have been allotted for staffers of the company and the same amount of shares (5%) have been put aside for collective investment fund.

Currently, the company has Rs 1,540,000,000 as the paid-up capital. With the allotment of the IPO, its paid-up capital will reach Rs 2,200,000,000.