United Ajod Insurance Opens Auction for Unsubscribed Rights Shares

2nd July 2026, Kathmandu

United Ajod Insurance Limited has officially announced a public auction for the sale of its unsubscribed promoter group rights shares.

United Ajod Opens Auction

The investment window opens an alternative opportunity for both existing stakeholders and the general investing public to acquire corporate equity units directly from the issuer.

The capital adjustment follows an initial issuance framework that failed to fully allocate all generated share blocks. By opening the registration pool, the underwriting firm aims to complete its mandatory capitalization targets in accordance with prevailing insurance regulations.

BACKGROUND AND AUCTION TIMELINES

The corporate shares became available after the insurance company executed a broad rights issue using a fixed ratio of 100:10. An initial auction phase was originally conducted from June 12 to June 22, 2026, which translates to Jestha 29 to Asar 8, 2083 on the traditional calendar.

The early bidding rounds were reserved exclusively for existing promoter shareholders. However, that phase did not attract a sufficient volume of bids to fully exhaust the pool. As a direct consequence of the low initial subscription rate, the company has officially reopened the auction to include all eligible retail, corporate, and institutional investors.

The newly established investment schedule features specific operational dates:

Advertisement

• Auction Opening Date: Bidders can begin submitting their sealed documentation starting from July 10, 2026, which corresponds to Asar 25, 2083.
• Auction Closing Date: The registration system will officially stop accepting new bidding forms on July 17, 2026, or Shrawan 1, 2083.
• Volume Available: The exact size of the investment pool consists of 63,847 remaining units of promoter group rights shares.

MINIMUM BID REQUIREMENTS AND PRICING METRICS

The insurance company has outlined structural boundaries that all prospective buyers must satisfy during application preparation. Bidders must calculate their financial commitments based on the mandatory parameters enforced by the corporate board:

• Minimum Base Price: The base entry value is set at NPR 100 per share, meaning all bids submitted below this threshold will face automatic rejection.
• Minimum Purchase Volume: Applicants must place bids for a minimum volume of 1,000 shares within a single application envelope.
• Incremental Scale: Any additional share requests placed beyond the baseline allocation must follow strict multiples of 10 shares, up to the total remaining volume available.

All submitted bids remain confidential and must be packed inside sealed envelopes. The allocation committee intends to distribute the shares to the highest bidders first, scaling down systematically until the entire remaining inventory is completed.

DESIGNATED SUBMISSION AND COLLECTION CENTERS

To facilitate smooth collection across different economic hubs, the insurance firm has mobilized an extensive financial distribution system. Interested buyers can purchase and submit official auction application forms by paying an administrative processing fee at specified merchant banking desks.

The primary execution point is managed by LS Capital Limited, located in Kamalpokhari, Kathmandu, which functions as the officially appointed issue manager for the transaction. For investors residing outside the capital valley, designated collection centers have been established at regional branches of Laxmi Sunrise Bank across the following municipal areas:

• Biratnagar and Birgunj
• Janakpur and Hetauda
• Narayanghat and Pokhara
• Butwal and Nepalgunj
• Surkhet and Dhangadhi

The ongoing auction provides a clear pathway for independent market participants to acquire large equity blocks within the non-life insurance landscape. The capital acquired from this open public bidding process will assist United Ajod Insurance Limited in fortifying its statutory reserves and expanding its underwriting capabilities across emerging rural markets.

For More: United Ajod Opens Auction