Prabhu Life Insurance To Close IPO Issue On Poush 2

December 17, 2020 | Investopaper

Prabhu Life Insurance Company IPO

Prabhu Life Insurance Company Limited is going to close the Initial Public Offering (IPO) worth Rs 60 crores. The IPO issue was open from Mangsir 29, 2077. Due to over-subscription of shares, the issue will close on Poush 2, 2077. Interested investors can apply for the shares until the close of banking hours.

Securities Board of Nepal (SEBON) provided the approval for IPO on Mansir 11, 2077. The company had submitted application to SEBON on Ashwin 14, 2077.

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After the approval from SEBON, it is issuing 6,000,000 unit shares in the IPO. At a face value of Rs 100, the IPO of Prabhu Life Insurance is worth Rs. 60 crores.

ICRA Nepal has assigned the [ICRANP-IR] BB+ ratings to Prabhu Life Insurance Limited. This indicates moderate risk of default regarding timely servicing of financial obligations

Siddhartha Capital Market Limited is the issue manager for the IPO.

About Prabhu Life Insurance Company

Prabhu Life Insurance Company is one of the newly established life insurance company of Nepal. It started its operation from Mangsir 28, 2074 (December 14, 2017). Before receiving operating license from Beema Samiti, it was known as Star Life Insurance Co. Ltd. The major promoters include Prabhu Bank Limited and Shangrila Development Bank.

The company has a paid-up capital of Rs 1.40 Arba. It will float the 30 percent share worth Rs 60 crores to the general public. Thus, the promoters will possess 70 percent ownership in the company after the IPO.

Financial Condition Of Prabhu Life Insurance

Prabhu Life Insurance Company has a current paid-up capital of Rs 1.40 Arba. After the issue of IPO, the capital will rise to Rs 2 Arba. This will meet the minimum capital requirement for the life insurance companies in Nepal, as directed by Beema Samiti.

In the fiscal year 2076/77, Prabhu Life Insurance Company has collected Rs 119.78 crores in total premium by selling 67,092 insurance policies. The company has made a total investment of about Rs. 2.29 Arba. Likewise, Prabhu Life Insurance has earned Rs 4.45 crores in net profit. The company has the total reserve of Rs 14.89 crores. Similarly, the life assurance fund until Ashad end, 2077 stands at Rs 1.04 Arba. [Based on the unaudited quarterly report of FY 2076/77]

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