Asian Life Insurance Opens Auction of Over 358,000 Unsold Rights Shares
7th September 2025, Kathmandu
Asian Life Insurance Company Limited has initiated an auction for more than 358,000 unsold rights shares, with the application window now open to the public.
Asian Life Insurance Rights Shares
This auction is a direct result of the company’s previous rights issue, which was conducted between July 9 and August 4, 2025 (Ashad 25 and Shrawan 20, 2082), and resulted in a significant portion remaining unsubscribed. The auction process, which is standard practice in Nepal’s capital market for unsubscribed shares, allows the company to secure its intended capital infusion while offering a new opportunity for both new and existing investors to acquire shares.
Auction Details and Application Process
The total number of shares up for auction is 358,512.48 units. This lot is divided into two categories: 30,038.57 units for the promoter group and 328,473.91 units for the public shareholder portion. Both institutional and individual investors are eligible to participate in the bidding process.
To participate, bidders must adhere to the following key conditions:
Minimum Bid Price: The minimum bid price is set at the face value of NPR 100 per share. This is a particularly attractive feature, as it offers a potential entry point at a competitive price, depending on the final cut-off price determined by the competitive bidding process.
Minimum Application Size: The minimum number of shares that can be applied for is 1,000 units.
Maximum Application Size: There is no upper limit on the number of shares an investor can bid for, allowing a single investor to apply for all 358,512.48 available units.
The application window for the auction opened on September 7, 2025 (Bhadra 22, 2082) and will close on September 14, 2025 (Bhadra 29, 2082). This provides investors with a one-week period to submit their bids.
To ensure broad access for investors across the country, applications can be submitted at a number of locations. The primary point of contact is the issue manager, Muktinath Capital Limited, at its head office in Naxal, Kathmandu. Additionally, applications can be submitted at various branches of Muktinath Bikas Bank, which include locations in: Thimi, Kumaripati, Birtamode, Biratnagar, Birgunj, Janakpur, Hetauda, Narayangadh, Pokhara, Baglung, Butwal, Dang, Nepalgunj, Dhangadhi, and Mahendranagar. This extensive network facilitates participation from investors in different regions of Nepal.
Implications and Company Outlook
The auction of these rights shares holds several important implications for the market and investors. It provides an opportunity for investors to acquire shares of Asian Life Insurance at a potentially attractive price, as the final allotment price will be determined by the highest bids received. The level of oversubscription in the auction will serve as a strong indicator of market sentiment and investor confidence in the company.
Asian Life Insurance Company is one of the key players in Nepal’s life insurance sector. The capital that will be raised from this auction is crucial for the company’s financial health. It will be used to strengthen its solvency, enhance its ability to manage risks, and support its strategic expansion plans. The Nepalese insurance sector has been experiencing steady growth, driven by increasing public awareness of the importance of insurance and a growing middle class. The capital raising initiatives like this one are vital for companies to capitalize on these growth opportunities.
For investors, participation in this auction is a chance to gain exposure to a growing sector with long-term potential. Once the auctioned shares are allocated, they will become tradable on the secondary market, providing liquidity for investors. This process helps to ensure that the company receives its required capital, while also creating a transparent and fair mechanism for share distribution to a wider range of investors, both old and new. The auction is a strategic step for Asian Life Insurance to raise capital and position itself for continued growth and market leadership in Nepal’s competitive insurance industry.
For More: Asian Life Insurance Shares
