Guardian Micro Life Insurance Limited (GMLIL) || IPO Alert || Reasons to Apply || @IPO_Apply

Company Profile:

Guardian Micro Life Insurance Limited (GMLIL) was founded on December 26, 2022, and officially started operating as a micro-life insurance company on July 7, 2023, after receiving its license on April 10, 2023. The company is based in Biratnagar Municipality, Morang, Nepal. 



It provides various micro-life insurance plans, such as term plans, endowment plans, and group plans, through a wide sales network. By mid-July 2024, the company had a paid-up capital of Rs. 525 million and total assets worth Rs. 562 million.

About the IPO:

Guardian Micro Life Insurance Limited is offering its Initial Public Offering (IPO) to the public from Poush 21, 2081 (today) to Poush 24, 2081. If not fully subscribed, the application period may extend until Magh 6, 2081.

Out of the total 22,50,000 shares:

  • 2,25,000 shares (10%) were allocated to Nepalese citizens working abroad.
  • 67,500 shares (3%) are reserved for company employees.
  • 1,12,500 shares (5%) are set aside for mutual funds.
  • The remaining 18,45,000 shares are available to the general public.

Kumari Capital Limited is managing the IPO. Investors can apply for a minimum of 10 shares and a maximum of 1,000 shares.

Particulars

Percentage

Units

Amount

Total Capital

100%

75,00,000

75,00,00,000

Total Issue (General Public)

30%

22,50,000

22,50,00,000

Issue Manager

Kumari Capital Limited

 

 

Issue Open Date

21st Poush

 

 

Issue Closing Date (Earliest)

24th Poush

 

 

Issue Closing Date (Late)

6th Magh

 

 

Minimum Application

10 units

 

 

Maximum Application

1,00,000 units

 

 


Capital Structure:

Authorized Capital

80,00,00,000

Issued Capital

75,00,00,000

Current Paid-Up Capital

52,50,00,000

Capital after IPO Issuance

75,00,00,000


Shareholding Structure

 

Number of shares

Amount

Percentage

Remarks

Promoters

52,50,000

52,50,00,000

70%

Already issued

General Public

22,50,000

22,50,00,000

30%

To be issued

Total

75,00,000

75,00,00,000

100%

 


Board of Directors:

Name

Position

Mr. Udeep Shrestha

Chairman

Dr. Jay Prakash Jaiswal

Director

Mr. Udaya Narayan Bhattarai

Director

CA Trishila Jhunjhunwala

Director

Pramod Prasad Bhattarai

Director


Management Team:

S.N.

Name

Position

1

Chirayu Bhandari

Chief Executive Officer

2

Jyoti Prakash Pandey

Deputy Chief Executive

3

Kailash Devkota

Chief Manager

4

Sunita Koirala

Chief Manager

5

Ram Prasad Poudel

Company Secretary

6

Samir Kharel

Manager

7

Deelip Sharma

Manager

8

Jeevan Rai

IT- Head


Uses of funds:

S.N.

Particulars

Amount

1.       

Fixed deposits issued by banks and financial institutions

22,30,00,000

2.       

Branch expansion and enhancement of physical infrastructure deposit

20,00,000

Total

22,50,00,000


CARE Ratings:

CARE Ratings Nepal Limited (CRNL) has given Guardian Micro Life Insurance Limited (GMLIL) a rating of ‘CARE-NP BB- (Is)’. This means the company faces a moderate risk of not meeting its financial obligations on time in Nepal.

Key Strengths:

  • Experienced board members and management team.
  • Moderate reach across Nepal through branches, sub-branches, and agents.
  • Proper reinsurance setup and good investment quality.

Key Weaknesses:

  • Small-scale operations with limited history and focus on micro-term policies.
  • Competition from well-established insurance companies.
  • Risk of regulatory changes affecting the business.

Financial Highlights:

Financial Highlights

Particulars

Actual

 

Estimated

2079/080

2080/081

2081/082

2082/083

2083/084

Total Paid-Up Capital ('000)

5,25,000

5,25,000

7,50,000

7,50,000

7,50,000

Reserve & Surplus ('000)

1,796

3,079

9,431

19,240

30,820

Net Profit ('000)

5,26,796

5,28,079

7,59,461

7,69,240

7,80,820

Earnings per share (Rs.)

0.34

0.25

0.85

1.3

1.54

Net worth per share (Rs.)

100.34

100.59

101.26

102.57

104.11

Return on Equity (%)

0.34%

0.25%

0.84%

1.27%

1.48%


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