ICRA Nepal assigns grade 4 to upcoming 25% right issue to Surya Life Insurance

Tue, Mar 29, 2016 12:55 PM on Latest, Featured, Credit Rating, Stock Market,
ICRA Nepal has assigned an “[ICRANP] IPO Grade 4”, indicating below-average fundamentals to the proposed rights issue amounting NPR 125 million of Surya Life Insurance Company Limited (SLICL). The process to issue right share of SLICL is on review in SEBON. The insurance company is proposing 4:1 (25%) rights issue of 1,250,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. Laxmi Capital Markets Limited has been assigned as the issue manager for the right issue. SLICL had earned a net profit of Rs. 2.10 crore in the second quarter of the current fiscal year. The paid up capital of the insurance company stands at 50 crore. After the issuance of 25 percent, the paid up capital will stand at Rs 62.5 crore. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals.