Microinsurance Companies in Nepal Set to Launch IPOs After the SEBON chairman's term ended, the position is still vacant, causing delays in approving
Microinsurance Companies in Nepal Set to Launch IPOs
After the SEBON chairman’s term ended, the position is still vacant, causing delays in approving IPOs and affecting regular operations. About 77 companies are in line, waiting for their IPOs to be reviewed and approved.
Despite these delays, many companies have submitted their IPO proposals to the Securities Board of Nepal (SEBON) to raise funds by selling shares to the public. Recently, four microinsurance companies were added to SEBON’s IPO pipeline. Below is a simple overview of their IPO plans and important details.
Key Takeaways
- All four companies aim to raise NPR 22.50 crores each through their IPOs.
- NIMB Ace Capital Limited serves as the issue manager for three IPOs.
- Guardian and Crest are new companies, both operational since 2023.
- ICRA Nepal has assigned a credit rating of [ICRANP-IR] BB to Crest Micro Life Insurance Limited and Protective Micro Insurance Limited, reflecting moderate creditworthiness.
1. Guardian Micro Life Insurance Limited
- Shares Offered: 2,250,000 shares
- Fundraising Goal: NPR 22.50 crores
- Application Date: Shrawan 24, 2081
- Issue Manager: Kumari Capital Limited
Overview: Guardian Micro Life Insurance Limited provides accessible and affordable life insurance for low-income families, offering tailored and budget-friendly policies. Through its IPO, the company aims to secure funding for expansion and enhance its market presence.
2. Crest Micro Life Insurance Limited
- Shares Offered: 2,250,000 shares
- Fundraising Goal: NPR 22.50 crores
- Application Date: Bhadra 20, 2081
- Issue Manager: NIMB Ace Capital Limited
- Credit Rating: [ICRANP-IR] BB
Overview: Licensed in April 2023, Crest Micro Life Insurance operates from its head office in Surkhet and registered office in Sanepa, Lalitpur. As of mid-July 2024, its paid-up capital is NPR 525 million, with major shareholders including Himalayan Reinsurance Limited (21.43%) and Metro Capital Pvt. Ltd. (16.62%).
3. Nepal Micro Insurance Company Limited
- Shares Offered: 2,250,000 shares
- Fundraising Goal: NPR 22.50 crores
- Application Date: Bhadra 24, 2081
- Issue Manager: NIMB Ace Capital Limited
Overview: Nepal Micro Insurance Company, the first non-life microinsurance company in Nepal, has been operational since Bhadra 8, 2079. It specializes in providing affordable and customized coverage to low-income households in remote and rural areas. The company’s IPO will help it strengthen its market position and expand its services.
4. Protective Micro Insurance Limited
- Shares Offered: 2,250,000 shares
- Fundraising Goal: NPR 22.50 crores
- Application Date: Ashwin 20, 2081
- Issue Manager: NIMB Ace Capital Limited
- Credit Rating: [ICRANP-IR] BB
Overview: Licensed in April 2023, Protective Micro Insurance Limited operates from its head office in Dhangadhi, Kailali. As of mid-July 2024, its paid-up capital is NPR 525 million, with Himalayan Reinsurance Limited (21.43%) and Metro Capital Pvt. Ltd. (15.38%) as major shareholders. The company has reported steady financial growth, with total assets increasing from NPR 545 million in 2023 to NPR 594 million in 2024.
Conclusion
The share market in Nepal is experiencing significant ups and downs due to the country’s challenging economic situation. However, the economy remains closely tied to the performance of the stock market. Many companies from various sectors are seeking to expand, with several proposing upcoming IPOs to SEBON for approval. Among these, microinsurance companies have submitted their plans, and some requests have already been approved and added to SEBON’s pipeline.
