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.
The IPO of Prabhu Life Insurance Limited is in pipeline and is currently under preliminary review from SEBON.
The company had applied for approval to issue an IPO on Ashwin 14. A total of 60 lakh units will be issued to the general public. 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. Siddhartha Capital is appointed the issue manager for this IPO.
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. 4.44 crores in the fourth quarter of the fiscal year 2076/77.