SEBON Approves IPO Proposal of Himalayan Re-insurance Limited, Premium Price Revised to Rs. 206 Per Share

The Securities Exchange Board of Nepal (SEBON) has granted approval for the proposed initial public offering (IPO) of Himalayan Re-insurance Limited.

Himalayan Re-insurance Limited is set to issue 30,000,000 equity shares to the general public at a price of Rs. 206 per share, which comprises a face value of Rs. 100 and a premium of Rs. 106 per share. This IPO issuance is expected to raise a total of Rs. 6.18 Arba for the company. It's worth noting that Himalayan Re-insurance had initially applied for permission to conduct the IPO at a premium price of Rs 208 which has now been revised to Rs. 206.

NMB Capital Limited has been appointed as the issue manager for the IPO issuance, and the application for this IPO was submitted to SEBON on the 26th of Bhadra, 2080.

With this, Himalayan Re-insurance will be the second reinsurance company to issue an IPO.

Himalayan Reinsurance, a pioneering private-sector reinsurance company in Nepal, specializes in offering reinsurance support to both Life and Non-Life Insurance Companies within Nepal and on an international scale. The company was granted its operational license in 2021.

The prominent promoters of Himalayan Reinsurance consist of leading business conglomerates in Nepal and significant financial institutions. Some of the noteworthy promoters include Golchha Group, Shanker Group, Infinity Holdings, Lucky Group, Ramesh Corp, Shiv Shakti Group, Himalayan Infrastructure Fund Ltd., Shalimar Investment, Saffron CK Investments, Vaishnav Enterprises, Murarka Group, K L Dugar Group, M V Dugar Group, R H Group, M S Corp, IME Group, Prem Gurung and Group, Ashlesha Enterprises, Allied Continental, and Balaji Marbles.

In addition to these prominent business houses, the list of promoters encompasses two of Nepal's topmost commercial banks, primarily owned by the Government of Nepal. These banks are Nepal Bank Limited and Rastriya Banijya Bank Limited.

As of the end of the third quarter, the company had a paid-up capital of Rs. 7 Arba and maintained reserves and a surplus of Rs. 38.58 crores. Notably, the company experienced a significant growth in Net Premium, with a remarkable 612.61% increase, totaling Rs. 3.38 Arba up to the third quarter of the fiscal year 2079/80.

ICRA Nepal has reaffirmed an issuer rating of [ICRANP-IR] A- (pronounced ICRA NP Issuer Rating A Minus) to Himalayan Reinsurance Limited, indicating an adequate degree of safety regarding the timely servicing of financial obligations. Such issuers carry low credit risk.