National Life Insurance Puts 160,000 Promoter Shares Up for Sale
23rd September 2025, Kathmandu
National Life Insurance Company Limited has put 160,000 promoter shares up for sale.
National Life Promoter Shares
National Life Insurance Company Limited has put 160,000 promoter shares up for sale. The company, a major player in Nepal’s insurance sector, is selling the shares to comply with a directive from the Nepal Insurance Authority. This move is part of a multi-phase process to adjust the company’s shareholding structure.
Share Sale Details and Procedure
The sale is being conducted in a two-phase process. In the initial phase, only existing promoter shareholders of National Life Insurance are eligible to apply. This gives them the first right of refusal to increase their stake in the company. The application period for this phase is 35 days from the date of the public notice. Interested promoters must submit their applications to the company’s head office located in Lazimpat, Kathmandu. The shares are being sold at a price that will not be lower than the regulatory minimum, ensuring the transaction adheres to fair valuation standards. The price per share is set at NPR 100.
The total number of listed shares for National Life Insurance Company Limited is approximately 54.73 million units. The sale of 160,000 shares is a relatively small portion of the total, but it represents a significant opportunity for the company’s founders and core investors.
Regulatory Context and Future Plans
The sale is a direct result of a directive from the Nepal Insurance Authority, the regulatory body for the insurance sector. Such directives are often issued to enforce compliance with rules regarding the minimum public shareholding, which is a common requirement in many countries to ensure market transparency and broader ownership. The directive also addresses the need for insurance companies to maintain a balanced share structure.
If the existing promoters do not fully subscribe to the shares within the 35-day period, the company has stated that it will open the sale to the general public. This second phase would be conducted in accordance with the necessary regulatory processes and would provide an opportunity for retail investors to acquire a block of shares in a well-established company.
Implications for Investors
The share sale has different implications for the two categories of investors. For existing promoter shareholders, this is a direct and exclusive opportunity to acquire more shares, thereby solidifying their influence and ownership in National Life. For the general public, it is a potential future opportunity to invest in the company’s equity, but only if the shares remain unsold after the first phase.
This strategic sale aligns with the company’s broader objective of maintaining regulatory compliance while providing its promoters with an avenue to adjust their holdings. The process is transparent and structured to ensure that all parties are treated fairly, with the Insurance Board’s rules guiding the entire procedure. The move demonstrates the company’s commitment to adhering to national financial regulations and maintaining a healthy corporate governance structure.
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