Nepal Life Insurance Offers 200,000 Promoter Shares for Sale

18th November 2025, Kathmandu

Nepal Life Insurance Company Limited has officially announced the sale of a substantial block of two lakh (200,000) promoter shares belonging to one of its founder shareholders, Mr. Bodh Prasad Tripathi.

Nepal Life Promoter Shares

This divestment process adheres strictly to regulatory norms, mandating that the opportunity must first be extended exclusively to the company’s existing promoter shareholders. This strategic offering is a controlled procedure intended to allow the current promoter group to maintain their ownership stability before any external sale is considered.

Regulatory Requirements and Priority Sale

The sale is governed by central bank directives and the regulations set forth by the Nepal Insurance Authority, ensuring a systematic and fair process.

Priority to Promoters: As a mandatory regulatory requirement, the entire offering of 200,000 shares must first be made available to the existing promoter shareholders of Nepal Life Insurance Company Limited. This means that only current promoter shareholders are eligible to submit a purchasing application during the initial phase.

Purpose of Restriction: This restriction is a common practice in the Nepali financial sector, designed to preserve the required promoter holding percentage and prevent unauthorized transfers of control, thereby maintaining the institutional stability and corporate governance of the insurance company. The current promoter holding in Nepal Life is reported to be 51.00%, making controlled transfers of promoter shares vital.

Application and Submission Procedure

For eligible founder shareholders, a clear and time-bound application process has been outlined by the company.

Share Registrar: Interested promoter shareholders must submit their formal application to the company’s designated share registrar, Nepal Life Capital Limited. The registrar’s office is located in Kamalpokhari, Kathmandu.

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Deadline: A specific window of 35 days from the date of the public notice has been provided for the submission of all applications. Applications received after this deadline will not be considered during the promoter-exclusive phase.

Application Content: The application submitted by the promoter shareholder must clearly state the exact number of shares they intend to purchase. The final allotment will depend on the total volume of interest received from all eligible promoter shareholders. If demand exceeds supply, a proportional allocation mechanism is often utilized.

Contingency for Public Sale and Market Context

Nepal Life has laid out a clear contingency plan should the initial offering fail to be fully subscribed by the existing promoter group.

Potential Public Offering: The company has explicitly stated that if no applications or insufficient applications are received from the existing promoter shareholders within the stipulated 35-day period, the remaining unsold shares will then be made available for sale to the general public. This secondary sale process would require the bank to secure further regulatory approvals to convert the promoter shares into ordinary shares for public trading.

Market Price Comparison: While the sale price for these promoter shares will likely be determined by the bids received, the current trading price of Nepal Life’s ordinary shares (NLIC) on the Nepal Stock Exchange (NEPSE) provides a context. As of the latest available data, the ordinary share price is approximately Rs. 804.50 per share, with a 52-week trading range of Rs. 702.00 to Rs. 890.00. Historically, promoter shares trade at a discount to ordinary shares due to their restricted transferability. The final price negotiated among the promoters could be significantly lower than the public market price, presenting a key investment consideration for the existing promoter group.

Company Standing: Nepal Life Insurance Company Limited is a leading player in the Nepali life insurance sector, with a large office network, a significant investment fund exceeding 200 Arba rupees, and over 33 Lakh policyholders, giving its shares, even the restricted promoter shares, a high intrinsic value.

This announcement is a routine yet significant development in the Nepali capital market, enabling Mr. Tripathi to divest a portion of his holdings and offering other promoters a chance to solidify their long-term position in the company.

For More: Nepal Life Promoter Shares