Market Watch, Stock News

Gurans IPO oversubscribed four times

Published by Octron on November 28, 2010

Gurans Life Insurance’s primary issue has been oversubscribed by four times to Rs 427.49 million. The insurance company had floated Rs 108 million worth 10,80,000-unit of ordinary shares at the face value of Rs 100 per unit for the public from November 19 to 23. The issue manager NMB Capital closed the issue on Tuesday after it was oversubscribed. As many as 49,534 people excluding the staff applied for 4.27 million-unit shares, said Sunil Devkota, chief executive office of the life insurance company.

The over-subscription of the primary issue shows the public still has faith in the capital market, though the secondary market has been performing poorly. Guras Life Insurance has now a paid-up capital of Rs 360 million with this primary issue worth Rs 108 million. However, life insurance companies have to raise their paid-up capital to Rs 500 million by July 15, 2013, according to a directive from Beema Samiti (Insurance Board).

We are going to increase our paid-up capital to Rs 500 million in two years by issuing rights and bonus shares, he said. There are nine life insurance companies and 16 non-life insurance companies, making it to a total of 25 insurance companies in the domestic insurance sector.

Source: THT

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