Things to Know Before Applying for IPO of Crest Micro Life Insurance; IPO Opens Today For Foreign Nepalese Immigrants
Tue, Jan 28, 2025 8:24 AM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Crest Micro Life Insurance Company Limited is a public limited company licensed by the Insurance Board in April 2023 and has been operational since then. The company's head office is in Surkhet, while its registered office is in Sanepa, Lalitpur.
As of mid-July 2024, Crest has a paid-up capital of NPR 525 million, with significant shareholding from Himalayan Reinsurance Limited (21.43%), Metro Capital Pvt. Ltd. (16.62%), Mr. Kishan Lal Dugar (6.67%), K.R.S Investment Pvt. Ltd. (6.67%), Ms. Sangeeta Devi More (3.97%), and Mr. Anupam Rathi (3.33%), among others. The company is preparing to float an IPO for the general public soon.
Crest reported a profit after tax of approximately NPR 4.50 million in FY2023, based on a total asset base of ~NPR 546 million as of mid-July 2023. In FY2024, the company achieved a profit of ~NPR 11 million, with its total asset base increasing to ~NPR 611 million by mid-July 2024.
About the Issue:
Crest Micro Life Insurance Limited has issued its IPO to Nepalese citizens working abroad from the 15th Magh to the 29th Magh, 2081. Note that the issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 75 Crores of which 30% i.e. 22,50,000 unit shares worth Rs. 22.50 Crores will be issued later for the general public. Of this public issue, 10% of the shares totaling 2,25,000 units shares have been allocated for Nepalese citizens working abroad, the issue of which opened today.
For Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units and the maximum quantity is 10,000 units.
NIMB Ace Capital Limited has been appointed as the issue manager.
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Crest Micro Life Insurance Limited |
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Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
75,00,000 |
75,00,00,000 |
|
Total Issue to Public (IPO) |
30% |
22,50,000 |
22,50,00,000 |
|
Nepalese Employed Abroad |
10% of IPO Units |
2,25,000 |
2,25,00,000 |
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Issue Manager |
NIMB Ace Capital Limited |
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Issue Open Date |
15th Magh |
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|
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Issue Closing Date (earliest) |
29th Magh |
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Minimum Application (For Nepalese Employed Abroad) |
10 |
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|
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Maximum Application (For Nepalese Employed Abroad) |
10,000 |
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Capital Structure:
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Authorized Capital |
1,00,00,00,000 |
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Issued Capital |
75,00,00,000 |
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Current Paid-Up Capital |
52,50,00,000 |
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Capital after IPO Issuance |
22,50,00,000 |
Shareholding Structures
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|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoters |
52,50,000 |
52,50,00,000 |
70% |
Already issued |
|
General Public |
22,50,000 |
22,50,00,000 |
30% |
To be issued |
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Total |
75,00,000 |
75,00,00,000 |
100% |
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Board of Directors
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S.N. |
Name |
Position |
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1. |
Mr. Rishi Raj More |
Chairman |
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2. |
Mridula Saria |
Director |
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3. |
Rohit Baidya |
Director |
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4. |
Bidur Puri |
Director |
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5. |
Pabitra Lal Chuke |
Independent Director |
Uses of Fund:
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S.N. |
Particulars |
Amount |
|
1. |
Investment in Bonds and Debentures |
6,86,00,000 |
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2. |
Fixed Deposit in Commercial Bank |
3,50,39,00,000 |
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3. |
Fixed Deposit in Development Bank |
34,30,00,000 |
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4. |
Fixed Deposit in Microfinance Companies |
17,15,00,000 |
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5. |
Debentures and Shares of Public Listed Companies |
34,30,00,000 |
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6. |
For Real State and office purposes |
1,50,00,00,000 |
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7. |
Investment Company |
25,00,00,000 |
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Total |
6,18,00,00,000 |
Financial Highlights:
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Financial Highlights |
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Particulars |
Actual |
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Estimated |
||
|
2079/080 |
2080/081 |
2081/082 |
2082/083 |
2083/084 |
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Total Paid-Up Capital ('000) |
5,25,000 |
5,25,000 |
7,50,000 |
7,50,000 |
7,50,000 |
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Reserve & Surplus ('000) |
3,952 |
8,855 |
26,959 |
99,459 |
1,96,324 |
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Net Profit ('000) |
4,495 |
12,655 |
58,074 |
1,18546 |
1,54,856 |
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Earnings per share (Rs.) |
0.86 |
2.41 |
7.74 |
15.81 |
20.65 |
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Net worth per share (Rs.) |
100.86 |
103.27 |
109.31 |
125.18 |
145.93 |
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Return on Equity (%) |
0.85% |
2.33% |
7.08% |
12.63% |
14.15% |
ICRA Ratings:
ICRA Nepal has assigned an issuer rating of [ICRANP-IR] BB (pronounced ICRA NP Issuer Rating double B) to Crest Micro Life Insurance Limited (Crest or the company), signifying a moderate risk of default in the timely servicing of financial obligations. This rating reflects an opinion on the general creditworthiness of the rated entity and is not tied to any specific debt instrument.
Key Rating Strengths:
- Strong ownership profile and adequate branch network
- Adequate capitalization profile and good-quality of investment
Key Rating Weakness:
- Limited track record, small scale, and scalability challenges
- A high proportion of term business, concentrated customer profile, and untested underwriting/reinsurance practices
