SEBON give green signal to 105% promoter right share of Everest Insurance; EIC furthur set to issue 300% right share

Securities Board of Nepal (SEBON) has provided final approval to Everest Insurance Company (EIC)  for the 105% promoter right shares.

The insurance company will issue 14,03,325 unit promoter right shares to its existing shareholders.

For the issuance of its 105% right shares, the company has appointed Siddhartha Capital as the issue manager.

Care Rating Nepal Ltd has assigned grading of CARE-NP IPO Grade 4 to the proposed Rights Share Issue of Everest Insurance Company Limited (EIC). CARE-NP IPO Grade 4 indicates Below Average Fundamentals.

After the adjustment of the right shares for the promoters of the company, the ratio of the shareholding of the promoters and ordinary shareholders will be changed to 51:49. The company is set to issue further 1:3 (300%) right shares for both the promoter and public shareholders amounting Rs 82.19 crore after which the total paid-up capital of the company will reach at Rs 1.09 arba which will meet the capital requirement as per the Insurance Board.

The current paid-up capital of the company is Rs 13.36 crore which will rise to Rs 27.39 crore after the adjustment of 105% right shares.

Everest Insurance Company (EIC) has stated a decrease in net profit by 20.91% in the fourth quarter of the FY 2074/75. The net profit of the company stands at Rs 3.72 crore. LTP of the company's stock stands at Rs 1206.