Nepal Bank to Sell Promoter Share of Nepal Insurance

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Nepal Bank to Sell Promoter Share of Nepal Insurance

April 28: Nepal Bank is planning to sell promoter shares of Nepal Insurance through auction bidding. The bank is selling 1.031 unit of shares of the insurance at a minimum price of Rs 400. The bank has appointed Siddhartha Capital as the Issue Manager.

The bank has set a limit of minimum 100 unit shares and maximum 15 percent paid-up capital of the insurance company or 431,410 units of shares for the interested investors. The existing shareholders of Nepal Insurance have to consider the limit while participating in the bidding process. The bank has include mandatory provision of including PAN number for shareholders applying above Rs 1 million. Meanwhile, shareholders applying up to Rs 1 million can include their PAN number willingly.

“The minimum price per share tagged for auction bidding is Rs 400. Thus, investors applying lower than the price will be not included in the auction bidding evaluation process,” says the bank.

The bank will receive minimum of Rs 410 millions income from the trading. If the shares are sold out at the current market price, the bank will get Rs 750 million. At present, the share price of Nepal Insurance is Rs 750 in the secondary market. The volume of share that is being sold by Nepal bank is 40 percent of total paid-up capital of the insurance company.

After the sales, the bank will still own 10 percent shares of Nepal Insurance. 21 days has been provided for the submission of applications for the auction bidding. The bank has clarifed that the share application of interested investors should reach Siddhartha Capital before 3 pm on May 17. Besides Nepal Insurance, the bank is also planning to sell shares of Rastriya Beema Sansthan, Citizen Investment Trust and Hotel Hyatt. 

 

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