Shikar Insurance to issue additional shares in upcoming FPO; price Rs 650 per share

ShareSansar, March 15:

As per the information received by NEPSE on Chaitra 1, the BoD meeting of Shikhar Insurance Company Limited held on Falgun 29 had decided to issue additional shares in its upcoming Further Public Offering (FPO) with the share price of Rs 650 per share, which is subject to approval from concerned regulators.

As per an official with the issuing company NIBL Capital, the insurance company will issue around 500,000 units of shares as part of the FPO.

Shikhar has become the first insurance company to issue FPO with a premium of Rs 550. Those who wish to buy the FPO must spend Rs 650, including a payment of Rs 100 for the existing paid up capital.

The company is issuing the FPO in order to increase the paid up capital and net worth of the company for which it has to make some changes to its articles of association and some regulations.

In order to maintain the stakes of promoters at 70 % and ordinary shareholders at 30%, the insurance company must get approval from company registrar’s office to amend its articles of association and regulations.
Shikhar Insurance Company Limited has posted net profit of Rs.73.98 in the 2nd quarter of the fiscal year 2071/72.