Book Closure for 50% right share of Prabhu Insurance on Chaitra 6; LTP at Rs 1038

Prabhu Insurance Limited (PRIN) has set book closure date for its upcoming 2:1 (50%) right shares. As per the notice published in NEPSE today, the 346^th BOD meeting of the insurance company has decided to close the register of their shareholders on Chaitra 6, 2073. Only those shareholders that have shares traded one trading day ahead of the book closure date i.e. Chaitra 3, 2073 are eligible to apply for the right shares. SEBON had given approval for the issuance of right shares on Falgun 12, 2073. ICRA Nepal has assigned Grade 4+ to the right issue, indicating below average fundamentals. Prabhu Insurance has earned Rs 2.97 crore in the second quarter of the FY 2073/74. Its net earnings from premium has increased to Rs 22.25 crore up to the second quarter, an increment of only 3.5% as compared to the corresponding quarter last year. It had distributed 17% bonus share to its shareholders for the fiscal year 2072/73. After the issuance of 50% right, its paid up capital will reach Rs 57.75 crore. Its last traded price (LTP) stand at Rs 1038 as on March 7, 2017