Union Life Insurance IPO is issued to the public on Thursday, July 8, 2021. The company is about to issue 6.5 million IPOs worth Rs 645 million.
Union Life Insurance IPO has secured 5 per cent of the total 6.4 million shares to be issued, i.e. 322,500 shares to employees and another 5 per cent to collective investment funds. The general public will be able to apply for the remaining 5.8 million shares. The company is going to issue 30 percent of its total issued capital.
Applications for the IPO can be submitted as early as July 12 and as late as July 20. Investors will be able to apply for a minimum of 10 units and 32,250 units.
The IPO issuance and sales manager is Prabhu Capital Limited. Interested applicants can apply through C-ASWA member banks and financial institutions and Meroshare. ICRA Nepal has given ICRA NP Issuer Triple B rating to the insurance company. This indicates an average risk in the company’s ability to bear financial obligations.
At present, the company’s paid-up capital is Rs 1.5 billion. After the IPO issuance and distribution, the company’s paid-up capital will reach Rs 2.15 billion.
About Union Life Insurance Company Ltd.
Union Life Insurance Company Ltd. has been established and registered under Company Act 2063 and Insurance Act 2049 in the year 2074 B.S (Regd. No. 168131/73/074) as a Public Limited Company and got a license to operate Life Insurance Business on 2074/03/20(04/07/2017). Union Life Insurance Company has been established with sole Nepalese Capital. The Company comprises of renowned & big promoters; Jagadamba Group, Golchha Group, Gadiya Group, Naupane Group, Rajesh hardware & Tibrewala Group.
AUTHORIZED AND PAID UP CAPITAL
The authorized capital of the Company is NRs. 215 crore. The promoters have contributed 70% of this, amounting to NRs. 150.50 Crore whereas the other Nepalese Citizens are to contribute remaining 30% of this capital amounting to NRs. 64.50 Crore.
VISION
As the country turned into the globalization and diversification in the insurance sector, the Union life insurance company will supply all kinds of life insurance policy service as per the international standards level. It will develop and contribute to social as well as financial sectors towards making development of the nation .It will expand its networking in international market for providing maximum benefit to policyholders & stake holders.
MISSION
The mission of the company is to provide its customers with the range of different life insurance services that best meets their needs with total security, competitive rate of premiums, compensation and one-to-one service that treats the customer as an individual, not a number. Create resources and generate employment opportunities and developed saving habits of individuals for their financial stability and improvement of their living standard. Life insurance is not just a business, it is a social service as well.
OBJECTIVES OF THE COMPANY
The primary objective of the company is to carry on all life insurance business including the health insurance. The company is to provide qualitative life assurance services to its valued customer/policyholders by introduction of latest technology and new product. The Company would actively involve itself in mobilization of domestic savings. Meanwhile the long-term target of the life insurance company would be as given below.
i) To become one of the famous & giant life insurance company in Nepal in terms of premium income, no. of policy, bonus, profit & high rate of return to its stakeholders.
ii) To become highly professional insurance company by implementing the good corporate governance.