Nepal Life Founder Shares Sale: 50,000 Units on Offer
23rd February 2026, Kathmandu
The corporate landscape of Nepal’s insurance sector has seen a new development as Nepal Life Insurance Company Limited (NLIC) officially announced the commencement of a founder share sale process. On February 23, 2026 (Falgun 11, 2082), the company notified the market that 50,000 units of founder shares are now available for purchase. These shares, originally held by founder shareholder Uday Prasad Ojha, are being divested following a formal application submitted by the owner to the company board. As the largest life insurance provider in Nepal by life fund and market capitalization, any movement in Nepal Life’s ownership structure is closely monitored by investors and regulators alike. This sale is being conducted under the strict supervision of the Nepal Insurance Authority guidelines and the prevailing bylaws governing the transfer of promoter holdings in listed companies.
Nepal Life Founder Shares
The divestment is being executed in accordance with Directive Number 11 of the Founder Share Transaction Guidelines 2077. This regulatory framework is designed to maintain the stability of the promoter group while ensuring a transparent exit path for individual founders. One of the most critical aspects of this directive is the right of first refusal granted to existing founder shareholders. Before these 50,000 shares can be offered to the general public or outside investors, they must first be offered to the current pool of founders. This mechanism ensures that the existing leadership and founding groups have the opportunity to consolidate their holdings and maintain their relative voting power within the company’s governance structure. A 35 day application window has been established for this purpose, starting from the date of the official announcement.
Interested and eligible founder shareholders are required to submit their formal expressions of interest at the corporate office of Nepal Life Capital Limited, located in Kamalpokhari, Kathmandu. Nepal Life Capital, serving as the subsidiary and investment arm of the parent insurance company, is managing the documentation and verification process for this transaction. Applicants must specify the number of units they wish to acquire and the price they are willing to pay, ensuring it aligns with the floor price or the negotiated terms set by the seller. If the existing founders do not fully subscribe to the 50,000 units within the 35 day period, the company is legally permitted to move to the next stage of divestment. This involves seeking approval from the Nepal Insurance Authority to offer the remaining shares to the general public or institutional investors who meet the fitness and propriety criteria for becoming a promoter.
The strategic importance of founder shares in a company like Nepal Life cannot be overstated. Unlike ordinary shares traded daily on the Nepal Stock Exchange (NEPSE), founder shares represent long term commitment and carry significant weight in the election of the board of directors. For an institution with a life fund exceeding 180 billion rupees, the composition of the promoter group is a key indicator of institutional stability. The release of 50,000 shares, while small relative to the total paid up capital of over 8 billion rupees, is a part of the natural lifecycle of equity where early investors seek liquidity. For the buyer, these shares offer a chance to enter the core ownership of a market leader, albeit with certain restrictions on immediate re-sale and a longer lock-in period compared to public equity.
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From a market sentiment perspective, the sale of founder shares is often viewed through the lens of valuation. Since founder shares are usually sold at a discount to the prevailing market price of ordinary shares due to their lower liquidity, the transaction price provides a benchmark for the underlying value of the company’s equity. Analysts often look at these secondary transfers to gauge the confidence level of the founding members. If existing founders quickly snap up the available units, it signals a strong belief in the future growth of the company. Conversely, if the shares proceed to a public sale, it opens the door for new institutional players, such as private equity funds or other corporate houses, to gain a foothold in one of Nepal’s most profitable financial institutions.
Furthermore, this sale process highlights the increasing professionalization of the Nepali insurance industry. The involvement of Nepal Life Capital as the managing entity ensures that the transaction adheres to all anti money laundering (AML) and know your customer (KYC) protocols. Every applicant must prove the source of their funds and ensure they do not exceed the individual shareholding limits set by the central bank and the insurance regulator. As Nepal Life continues to expand its digital footprint and innovate its product offerings, maintaining a clean and compliant cap table is essential for its long term credit rating and international reputation.
In conclusion, the launch of the Nepal Life Founder Shares sale marks a transparent and regulated approach to equity divestment. By providing a 35 day window for internal consolidation, the company is respecting the pre-emptive rights of its founders while following a path toward broader ownership if necessary. As the process moves forward at the Kamalpokhari office, it serves as a reminder of the structured nature of Nepal’s capital markets and the enduring value of the nation’s largest life insurer. Shareholders and potential investors are advised to keep a close watch on the outcome of this 35 day window, as it will determine the next phase of the sale and potentially influence the long term governance dynamics of Nepal Life Insurance Company Limited.
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