Prabhu Life Insurance Limited will be issuing 60,00,000 units worth Rs 60 crore as Initial Public Offering to the general public from (Mangsir 29- Poush 2, 2077). The early closing date of this issue is on Poush 2 and if the issue is not fully subscribed till Poush 2, then it can be extended up to Poush 13, 2077.
Out of the offered 60,00,000 units; 5% of the total offered shares to the general public i.e. 3,00,000 units have been set aside for the employees of the company and 5% of the total offered shares to the general public i.e. 3,00,000 units have been set aside for the mutual funds. The remaining 54,00,000 units are for the general public.
Siddhartha Capital Limited has been appointed as the issue manager for the IPO issuance.
Applications can be placed for a minimum of 10 units and a maximum of 5,000 units.
After the issuance of 60,00,000 units worth Rs 60 crore IPO shares the general public i.e 30% of total capital which will together raise its paid-up capital to Rs 2 arba and the promoter/public ratio will be 70:30.
ICRA Nepal has assigned the issuer rating of [ICRANP-IR] BB+ (pronounced ICRA NP Issuer Rating Double B plus) to Prabhu Life Insurance Limited (PLIL). Issuers with this rating are considered to have a moderate risk of default regarding timely servicing of financial obligations. ICRA Nepal has also assigned a grading of [ICRANP] IPO Grade 4, indicating below-average fundamentals, to the proposed initial public offering (IPO) of Rs. 60 crores.
Prabhu Life Insurance Limited is a new player in the life insurance industry of Nepal. Along with nine other LICs, the company was licensed by the Insurance Board in 2016/17, taking the total number of life insurers to 19 from nine. As of mid-July 2020, the company has been in operations with 90 outlets and 10,463 individual agents, and 25 corporate agents spread across the nation for procuring new business and extending after-sales services.
The company posted a net profit of Rs. 3.09 crores in the first quarter of the fiscal year 2077/78.
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