Reliance Life Insurance’s IPO Issue Oversubscribed by 4.25 times

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 Reliance Life Insurance’s IPO has received applications worth Rs 2.41 billion. According to sales manager Sanima Capital, 66,331 people have applied for 241,31,870 lots by 5 pm on Monday. This is 4.25 times more than the demand for 5.67 million open lots for sale to the public.

However, the sales manager said that the final figures are yet to come. Reliance has opened sale of 6.3 million IPO lots at the rate of Rs. Of the total 6.3 million IPOs sold by Reliance, 5% or 315,000 were allocated to collective investment funds and the same 5% or 315,000 to employees. The general public could apply for the remaining 5.67 million lots.

ICRA Nepal has given BB Plus rating to Reliance’s IPO. This indicates that the underlying condition of the company is average. At the same time, it indicates that the company’s ability to bear financial obligations is an average risk. Sanima Capital has acted as the sales manager. At present, RIL’s paid-up capital is Rs 1.70 billion. After the IPO sale, its paid-up capital will reach Rs 2.10 billion.

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