29th June 2025, Kathmandu
Sun Nepal Life Insurance has announced the sale of over 220,000 unsubscribed rights shares through a bidding process starting from Ashadh 23 (July 7, 2024).
Sun Nepal Rights Share Bidding
This move follows the company’s recent rights issue, where some shares remained unsubscribed. The sale offers investors an opportunity to buy shares at a fixed minimum price.
Details of the Rights Share Sale
The company will sell a total of 223,728 unsubscribed shares. These include 80,222 shares allocated to the founder group and 144,506 shares reserved for the general public group. Sun Nepal Life Insurance has set the minimum price at NPR 100 per share.
Interested buyers can place bids at or above the minimum price. The bidding process requires the founder group applicants to buy a minimum of 1,000 shares. Meanwhile, the general public group must apply for at least 100 shares. Applicants may apply for up to the full amount of shares available in their group.
Application Process And Deadlines
Investors can submit their bids starting from Ashadh 23 (July 7, 2024). The deadline to apply is Ashadh 30 (July 14, 2024) during regular banking hours. Applications must be submitted to Nepal SBI Merchant Banking Limited, the share sales manager. The office is located in Thamel, Kathmandu.
Additionally, investors can submit bids at Sun Nepal Life Insurance’s branch offices in Putalisadak (Kathmandu), Biratnagar, Birgunj, Pokhara, Butwal, Nepalgunj, Surkhet, and Dhangadhi. Both individual and institutional investors, including companies and organizations, can participate in this bidding sale.
Background: Recent Rights Issue
Sun Nepal Life Insurance opened its rights issue from Baishakh 30 to Ashadh 3 (mid-April to mid-June 2024). Shareholders could purchase new shares in a ratio of 1:0.27, equivalent to 27 percent of their existing shares. The company issued a total of 1,696,320 shares with a face value of NPR 100 each.
However, some shares remained unsubscribed. The total unsubscribed shares now being sold through bidding amount to approximately 220,000. This sale aims to fully mobilize the company’s capital and provide investment opportunities to new buyers.
Investment Opportunity And Market Potential
This bidding sale presents a valuable chance for investors to acquire shares in one of Nepal’s leading life insurance companies. Sun Nepal Life Insurance has maintained steady growth and expanded its market presence in recent years. By purchasing shares through this bidding process, investors can join the company’s journey toward growth and profitability.
The minimum price of NPR 100 per share offers a clear valuation benchmark. Investors may bid at or above this price, allowing them to gauge their entry according to market conditions.
How To Participate?
Interested parties should prepare their bid applications carefully. For founder group investors, the minimum purchase is 1,000 shares. For general public applicants, it is 100 shares. There is no maximum limit, so investors can apply for all shares available in their category.
Applications must be submitted before the deadline at Nepal SBI Merchant Banking Limited’s main office or any of the Sun Nepal Life branch offices listed. Investors should ensure timely submission to avoid disqualification.
Conclusion
Sun Nepal Life Insurance’s bidding sale of unsubscribed rights shares is a strategic step to mobilize capital and broaden shareholder participation. The sale opens doors for both new and existing investors to buy shares at a fixed minimum price. With clear guidelines and a transparent bidding process, this opportunity stands out in Nepal’s insurance and financial market.
Investors interested in participating should act promptly before the Ashadh 30 deadline. The company encourages all eligible individuals, companies, and organizations to take advantage of this share sale.
For more:- Sun Nepal Rights Share Bidding