IPO of Union Life Insurance Opening Today

The IPO of Union Life Insurance Company Limited worth Rs. 645 million is being floated from today.Its operating since July 2017. Its head office is in New Baneswor, Kathmandu. The company has an equity investment of multiple business houses in Nepal such as Jagadamba group, Golchha Organization, Gadiya group, Neupane group, Rajesh Hardware group & Tibrewala Group.

ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BBB(pronounced ICRA NP Issuer Rating triple B) to UnionLife Insurance Company Limited (ULICL). Issuers with this rating are considered to have a moderate degree of safety regarding timely servicing of financial obligations.

The total shares floated by Union Life Insurance Company Limited is 6,450,000 units, of which only 5,805,000 units are available to the general public after the allocation of shares to staff and mutual funds.

If we see the recently concluded IPO of previous issued IPO's, a total of more than 20 lakh applicants applied for the company IPO and we assume that the same or even more craze prevails in Union Life's IPO too. Since the 10 kitta rule exists for IPO; 5,80,500 applicants will be lucky enough to get the shares of Union Life Insurance Company Limited.

Hence, if the same number of applicants (or more) who applied for the previous IPO apply for this issue then there is a high probability of lottery for 10 units. Since the minimum unit is 10, it is advisable to apply only 10 units in the IPO issue of Union Life Insurance Company Limited.