Prabhu Mahalaxmi Life Insurance Announces Conclusion of Promoter and Employee Shares Lock-in Period on Poush 09
Wed, Dec 13, 2023 1:36 PM on Latest,
Following the recent guidelines published by the Securities Board of Nepal (SEBON), Prabhu Mahalaxmi Life Insurance Company Limited has notified its investors and stakeholders about the impending conclusion of the lock-in period for its promoters and employee shares on 9th Poush, 2080 (25th December 2023).
Prabhu Life Insurance Company initiated its initial public offering (IPO) on December 24, 2020, with a paid-up capital of Rs. 200 Crores. Subsequently, the company declared a 9.8% bonus shares for the fiscal year 2077/2078, elevating its paid-up capital to Rs. 219.6 Crores. Within this augmented capital structure, 70% of the shares, equivalent to 15,372,000 units, were under the ownership of promoter groups, while the remaining 30%, comprising 6,588,000 units, belonged to the public.
Later, despite Mahalaxmi Life Insurance not having conducted an IPO, its substantial paid-up capital of Rs. 210 Crores (equivalent to 21,000,000 units of shares) was seamlessly amalgamated with the 70% promoter shares of Prabhu Life through a merger. This addition further promoter shares of Prabhu Mahalaxmi Life came to a total of 36,372,000 units, and the overall paid-up capital surged to Rs. 429.6 Crores. Notably, the lock-in period for these 36,372,000 shares held by both promoter and employee shares is set to conclude on December 24, 2023
The joint business operations between Prabhu Life Insurance Company and Mahalaxmi Life Insurance Company commenced on Ashad 29, 2080 and 6,588,000 units of public shares will be soon listed in NEPSE.
Despite the merger, the company continues to grapple with a capital deficit of Rs. 70.4 Crores, falling short of the Rs. 5 Arba capital requirement mandated by the Nepal Insurance Authority (NIA) for life insurance companies. Originally expected to be fulfilled by the end of Chaitra, the regulatory board granted an extension of an additional 3 months, extending the deadline to the end of Ashad, to allow the company more time to meet the specified capital requirement.
