ICRA Nepal assigns Grade 3 to the proposed 30% right issue of Prudential Insurance; Book Closure for AGM on Kartik 17

ICRA Nepal Limited has assigned IPO Grade 3 rating to the upcoming 30% right share of Prudential Insurance Company Limited (PICL), indicating average fundamentals. The process of right share issuance is currently pending approval from Securities Board of Nepal (SEBON). PICL is proposing to come out with 30% rights issue of 1,283,040 numbers of equity shares of face value NPR 100/- each to be issued to its existing shareholders at par. As per Icra Nepal, The assigned grading factors in the strengthening of reinsurance arrangements in recent past4, moderate profitability profile backed by improvement in underwriting performance across major segments, moderate market share (around 7% in terms of GPW for FY17) and adequate branch network across Nepal (33 branches) for targeted business growth. The grading also takes into consideration, PICL’s adequate reinsurance arrangements in the past, including catastrophic provisions, which helped PICL maintain its claims paying ability, adequate solvency position and profitability profile in the aftermath of the April 2015 earthquake. Recently, Prudential Insurance have proposed 20% bonus share each from the profits of FY 2073/74. PICL current paid up capital stand at Rs 42.76 crore. After 20% bonus, its paid up capital will reach Rs 51.31 crore. Prudential Insurance has also published book closure date for the AGM today.  As per the notice published in NEPSE, the register of its shareholders will remain close from Kartik 17 till Mangsir 1, 2074 for the purpose of its AGM.  Only those shareholders buying shares until Kartik 16, 2074 will be eligible for the bonus share of the company and participate in the AGM. The AGM is going to be held on Mangsir 1, 2074. PICL had earned net profit of Rs 17.13 crore in the fourth quarter of last FY 2073/74. ICRA Nepal assigns IPO grading on a scale of IPO Grade 1 through IPO Grade 5, with Grade 1 indicating strong fundamentals and Grade 5 indicating poor fundamentals. For the grading categories 2, 3 and 4, the sign of + (plus) appended to the grading symbols indicate their relative better position within the grading categories concerned.