NB Insurance receives Icra Grade 4 for upcoming 80% right issue

Thu, Jun 2, 2016 10:44 AM 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 120 million of NB Insurance Company Limited (NBIL). The process to issue right share of NBIL is on review in SEBON. The insurance company is proposing 10:8 (80%) rights issue of 1,200,000 numbers of equity shares at the face value NPR 100/-each to be issued to the existing shareholders at par. Global IME Capital Limited has been assigned as the issue manager for the right issue. NBIL had earned a net profit of Rs. 2.20 crore in the third quarter of the current fiscal year. The paid up capital of the insurance company stands at 24.49 crore. After the issuance of 80 percent, the paid up capital will stand at Rs 44.08 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.