Reliable Nepal Life Insurance’s IPO worth Rs 30 million is sure to come.
Reliable Nepal Life Insurance Company is going to open a merchant bank with its own 100 percent investment. The company is in the final stages of registering a merchant bank named ‘Reliable Investment and Merchant Capital Limited’ with the Nepal Securities Board. The company has already registered in the Registrar’s Office on September 26.
The authorized capital of this merchant bank is fixed at Rs. 500 million and the issued capital is Rs. 300 million. The current paid up capital is Rs. 270 million. Out of the issued capital, it is planned to issue the remaining primary shares of Rs. 30 million.
The company plans to invest in Merchant Bank while diversifying its investments. The Government of Nepal will appoint a new Chairman of the Nepal Securities Board in a few days. The company has taken the whole process forward with the expectation of opening the license of Merchant Bank with the arrival of the new chairman.
Recently, there has been a wave of insurance companies investing in merchant banks. Asian Life Insurance Company bought Wealth Management last June to form Asian Capital.
Along with Asian’s move, other life and non-life insurance companies have also been attracted to Merchant Bank in recent times.
The wave of opening merchant banks has started with the conclusion that insurance companies with large investments would diversify their investments as well as manage their own investments. Some insurance companies have made a strategy to buy the old merchant bank while some have even made plans to open their own.
– insurance news