Shikar Insurance set to issue FPO at premium of Rs 550; the supplementary offering to cost Rs 650

ShareSansar, March 3:

Shikar has become the first insurance company to issue Further Public Offering (FPO) with a premium of Rs 550. Those who wish to buy the FPO must spend Rs 650, including a payment of Rs 100 for the existing paid up capital.

The company is issuing the FPO in order increase the paid up capital and net worth of the company for which it has to make some changes to its articles of association and some regulations.

The decision of its board of directors to issue the FPO is likely to be endorsed by the upcoming Annual General Meeting of the insurance company.

As per the preliminary evaluation, the price of the shares can be fixed at Rs 850 to Rs 900 including the premium.

As per the company, apart from increasing the paid up and net worth the company was issuing the FPO to increase the participation of general public in the company. In order to maintain the stakes of promoters at 70 % and ordinary shareholders at 30%, the insurance company must get approval from company registrar’s office to amend its articles of association and regulations.

In the upcoming AGM the company is set to announce 20% bonus shares for its shareholders, after which the paid up capital will rise to Rs. 36 crore. As per the company, after issuing 5 lakh unit of shares as part of the FPO, the company’s paid up capital will rise further to 49 crore.