Shikhar Insurance floats 2:1 right shares; 20% bonus share likely, too

ShareSansar, April 13:

Shikhar Insurance Company Limited has begun issuing the 2:1 right shares, which it announced during its last Annual General Meeting for the fiscal year 2068/69, from today.

The insurer has stated that the issuance of right shares of the face value of Rs 100 will close on May 18.

It had announced book closure the right shares from April 2.

Those who hold the shares of the company up to April 1 will be entitled to the right shares, according to a notice issued by Shikhar Insurnace today.

NIBL Capital Markets Limited at Lazimpat is the issue manager.

It may be noted that the insurer is also planning to pledge around 20 percent bonus share, according to sources.

“We are also planning to distribute around 20 percent bonus shares for the last fiscal year after calculating this right issue, going by the business growth,” a highly placed source with Shikhar Insurance told ShareSansar. “This will come to the tune of the last dividend we offered (40 percent for the previous two fiscal years).”

The company’s EPS stands at 52 as of the second quarter of the current fiscal year while its P/E ratio is 22.

But the source was quick to add that since they have not got the financial report approved from the Insurance Board they cannot explicitly give the final figure for the bonus shares.

He further informed that the company is planning to hold the AGM by the second week of Baisakh.

Shikhar Insurance posted a profit growth of whopping 1605.43 percent in the fiscal year 2068/69 and had went on to offer 40 percent bonus shares.

The company had made a profit of Rs 9.40 crore as compared to Rs 55.15 lakh earned in the previous fiscal.

Though the income from insurance premium increased a mere 6.57% to Rs 92.29 crore, over all income grew 45.26 percent to Rs 15.86 crore.