Sanima Life Insurance has set a new record in the number of people applying for IPO. The company’s IPO has received more than 2.4 million applications so far.
According to Prabhu Capit, the company’s share issuer and sales manager, as of Sunday, 2,419,127 applicants have applied for the purchase of 36,943,440 shares worth about Rs 3.69 billion.
This is 6.84 times more than the 5.4 million allotted to the general public.
The company has issued 6 million shares equal to Rs 600 million, which is 30 percent of the total issued capital of Rs 2 billion. Of that, 5 percent or 300,000 shares have been secured for employees and another 5 percent or 300,000 shares for collective investment funds have been secured and the remaining 5.4 million shares have been allotted to the public.
As there are more applications than the demand in the IPO issued by the company, the securities will be distributed as per the issuance and distribution guideline. According to the directive, only 540,000 applicants will get shares when the shares are distributed at the rate of at least 10 lots through round robin.
Accordingly, about 1.879 million applicants will not get shares.
Currently, the company’s paid-up capital is Rs 1.40 billion. The company’s paid-up capital will reach Rs 2 billion after the IPO.