Prabhu Insurance issuing 50% (19.25 lakh units) Right Shares from today; Offer ends on Jestha 2

Prabhu Insurance Limited (PRIN) is issuing 2:1 (50%) right shares to its existing shareholders from today (Chaitra 30, 2073). The rights issue will close on Jestha 2, 2074. Prabhu Insurance is issuing a total of 19,25,078.81 unit right shares at the face value of Rs 100. The book closure date for 50% right issue has been set for Chaitra 6, 2073. Only the shares registered one trading day ahead of the book closure date i.e. Chaitra 3, 2073 are eligible for the right shares. Prabhu Capital Limited is the issue manager for the right issue. After the adjustment of the rights shares, the insurance company’s total paid-up capital will reach Rs 57.75 crore from the existing Rs 38.50 crore. The company has authorized capital of Rs 1 arba. Interested shareholders can collect the application forms from Prabhu Capital, Durbarmarg, Kathmandu, and all branch office of Prabhu Bank. The application forms can also be downloaded from their respective websites. 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. Its last traded price (LTP) stands at Rs 1,257 as on April 11, 2017.