Things to Know Before Applying for IPO of Himalayan Reinsurance Limited; Biggest IPO For Nepalese Citizens Working Abroad So Far
Wed, Nov 22, 2023 5:09 PM on IPO/FPO News, Company Analysis, Latest,
Company Profile:
Himalayan Re-insurance Limited is the second reinsurance company to issue an IPO in Nepal.
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.
About the Issue:
Himalayan Reinsurance Limited has been issuing its IPO to Nepalese citizens working abroad from the 4th Mangsir which will go on till 18th Mangsir, 2080. The issue will not be extended from the early closing date for Nepalese citizens working abroad.
The issued capital of the company is Rs. 10 Arba of which 30% i.e. 3,00,00,000 unit shares will be issued to the public (Nepalese citizens working abroad and the general public). Out of this total issue, 10% i.e. 30,00,000 unit shares have been allocated for Nepalese citizens working abroad, the issue of which was opened.
For Nepalese citizens working abroad, the minimum application quantity to be applied is 10 units and the maximum quantity is 3,00,000 units.
NMB Capital Limited has been appointed as the issue manager.
According to CDSC, 11,363 applications have been received through Nepalese citizens working abroad for a total of 9,74,090 units so far. Approx 33% IPO have been subscribed in 3 days.
|
Himalayan Re-insurance Company |
|
|
|
|
Particulars |
Percentage |
Units |
Amount |
|
Total Capital |
100% |
10,00,00,000 |
10,00,00,00,000 |
|
Total Issue to Public (IPO) |
30.00% |
3,00,00,000 |
3,00,00,00,000 |
|
Nepalese Employed Abroad |
10% of IPO Units |
30,00,000 |
30,00,00,000 |
|
Employees |
2% of IPO Units |
6,00,000 |
6,00,00,000 |
|
Mutual Fund |
5% of IPO Units |
15,00,000 |
15,00,00,000 |
|
Public |
83% of IPO Units |
2,49,00,000 |
2,49,00,00,000 |
|
Issue Manager |
NMB Capital Limited |
|
|
|
Issue Open Date |
4th Mangsir |
|
|
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Issue Closing Date (earliest) |
18th Mangsir |
|
|
|
Minimum Application (For Nepalese Employed Abroad) |
10 |
|
|
|
Maximum Application (For Nepalese Employed Abroad) |
3,00,000 |
|
|
Capital Structure:
|
Authorized Capital |
21,00,00,00,000 |
|
Issued Capital |
10,00,00,00,000 |
|
Current Paid-Up Capital |
7,00,00,00,000 |
|
Capital after IPO Issuance |
10,00,00,00,000 |
Shareholding Structures:
|
|
Number of shares |
Amount |
Percentage |
Remarks |
|
Promoters |
7,00,00,000 |
7,00,00,00,000 |
70% |
Already issued |
|
General Public |
3,00,00,000 |
3,00,00,00,000 |
30% |
To be issued |
|
Total |
10,00,00,000 |
10,00,00,00,000 |
100% |
|
Board of Directors:
|
S.N. |
Name |
Position |
|
1. |
Mr. Shekhar Golchha |
Chairman |
|
2. |
Mr. Shahil Agrawal |
Director |
|
3. |
Mr. Amit More |
Director |
|
4. |
Mrs. Sakshi Gupta |
Director |
|
5. |
Mr. Subash Jhunjhunwala |
Independent Director |
Management Team:
|
S.N. |
Name |
Position |
|
1. |
Upasana Poudel |
Chief Executive Officer |
|
2. |
Mukesh Kumar Kapoor |
Deputy Chief Executive |
|
3. |
Manish Kumar |
Executive Director |
|
4. |
Deepak Kumar Shrestha |
Executive Director |
Uses of Fund:
|
S.N. |
Particulars |
Amount |
|
1. |
Investment in Bonds and Debentures |
6,86,00,000 |
|
2. |
Fixed Deposit in Commercial Bank |
3,50,39,00,000 |
|
3. |
Fixed Deposit in Development Bank |
34,30,00,000 |
|
4. |
Fixed Deposit in Microfinance Companies |
17,15,00,000 |
|
5. |
Debentures and Shares of Public Listed Companies |
34,30,00,000 |
|
6. |
For Real State and office purposes |
1,50,00,00,000 |
|
7. |
Investment Company |
25,00,00,000 |
|
|
Total |
6,18,00,00,000 |
Financial Highlights:
|
Financial Highlights |
||||||
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Particulars |
Actual |
|
Estimated |
|||
|
2077/78 |
2078/79 |
2079/80 (Q3) |
2080/81 |
2081/82 |
2082/83 |
|
|
Total Paid-Up Capital ('000) |
7,000,000.00 |
7,000,000.00 |
70,000,000.00 |
10,000,000.00 |
10,000,000.00 |
10,000,000.00 |
|
Reserve & Surplus ('000) |
9,424.00 |
301,507.00 |
743,938.00 |
1,770,401.00 |
3,322,501.00 |
5,608,691.00 |
|
Share Premium ('000) |
- |
- |
- |
3,180,000.00 |
3,180,000.00 |
3,180,000.00 |
|
Net Premium ('000) |
78.00 |
434,539.00 |
3,484,453.00 |
7,780,226.00 |
10,851,695.00 |
13,665,960.00 |
|
Net Profit ('000) |
78.00 |
386,050.00 |
3,430,473.00 |
6,612,223.00 |
8,856,856.00 |
11,496,743.00 |
|
Earnings per share (Rs.) |
0.13 |
4.17 |
6.62 |
10.26 |
15.52 |
22.86 |
|
Net worth per share (Rs.) |
100.13 |
103.07 |
110.92 |
149.71 |
165.23 |
188.09 |
|
Return on Equity (%) |
0.00 |
0.53 |
0.48 |
4.42 |
5.37 |
6.12 |
ICRA Ratings:
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.
Key Rating Strengths:
- Strong ownership profile
- Regulatory and policy support for the domestic reinsurance companies
- Improved solvency ratio
Key Rating Weakness:
- Limited track record of operations
- Moderate profitability, supported by investment earnings
- Moderate retrocession arrangement; ability to secure adequate retrocession remains to be seen
- Geographical concentration risk and regulatory risk
