Gurans Life ordinary shares oversubscribed by four times

Guras Life Insurance's primary issue has been oversubscribed by four times to Rs 427.49 million.
The insurance company had floated Rs 108 million worth 10,80,000-unit of ordinary shares at the face value of Rs 100 per unit for the public from November 19 to 23. The issue manager NMB Capital closed the issue on Tuesday after it was oversubscribed.
"Some 49,534 people -- excluding the staff -- applied for 4.27 million-unit of shares," said Sunil Devkota, chief executive office of the life insurance company that is promoted by 17 promoters including Sunrise Bank, T M Dugar Group and a group of diverse businessmen, industrialist and legal professionals.
Despite the poor performance of the secondary market at present, the four fold subscription of the ordinary shares makes it clear that the public still hs faith in the primary issue.
With this primary issue worth Rs 108 million, Guras Life Insurance has now paid up capital of Rs 360 million.
However, life insurance companies have to raise their paid up capital to Rs 500 million by July 15, 2013, according to the Beema Samiti (Insurance Board) directive.
"We are going to increase our paid up capital to Rs 500 in next two year by issuing rights and bonus shares," he said.
There are nine life insurance companies and 16 non-life insurance companies making it to a total of 25 insurance companies in the domestic insurance sector. However, Rastriya Beema Sansthan is life-and non-life both facility.
The 34,092,725-unit shares of 20 insurance companies with a paid up value of Rs 3,409,272,500 are listed in the Nepse under the insurance sub-group that is one of the key players in the secondary market.
Though the insurance market is huge, there is a shortage of technical manpower, besides lack of awareness and education about the insurance in the domestic market.