After the chairmans of SEBON’s tenure ended, the post was vacant because of which the IPO approval of many companies is pending and lots of work is not moving smoothly. There are around 77 companies in the Pipeline under the preliminary review and final review waiting for IPO approval.
However, many new companies have submitted their proposals to the Securities Board of Nepal (SEBON), seeking to go for IPO to raise funds by offering shares to the public. Today 4 Microinsurance Companies are added to the pipeline by the SEBON. Here’s a closer look at those four companies IPO plans and other key details:
Key Takeaways
- Each of the four companies plans to raise NPR 22.50 crores through IPOs.
- NIMB Ace Capital Limited has been appointed as the issue manager for three of the IPOs.
- Guardian and Crest Micro Life Insurance Limited are relatively new companies, both operational since 2023.
- ICRA Nepal has rated Crest and Protective Micro Insurance Limited with a credit rating of [ICRANP-IR] BB, reflecting moderate credit risk.
1. Guardian Micro Life Insurance Limited
- Shares Offered: 2,250,000
- Fundraising Goal: NPR 22.50 crores
- Application Date: Shrawan 24, 2081
- Issue Manager: Kumari Capital Limited
Company Overview
Guardian Micro Life Insurance is dedicated to offering accessible and affordable life insurance solutions for low-income families. The company provides individual client needs, ensuring customized and budget-friendly policies. After the Guardian Micro Life Insurance IPO approval company aims to grow its market presence by increasing public investment. It marks an important step for the company as it looks to secure funding to support its future expansion plans.
2. Crest Micro Life Insurance Limited
- Shares Offered: 2,250,000
- Fundraising Goal: NPR 22.50 crores
- Application Date: Bhadra 20, 2081
- Issue Manager: NIMB Ace Capital Limited
- Credit Rating: [ICRANP-IR] BB
Company Overview
Licensed in April 2023, Crest operates from its head office in Surkhet and registered office in Sanepa, Lalitpur. As of mid-July 2024, its paid-up capital stands at NPR 525 million. Major shareholders include Himalayan Reinsurance Limited (21.43%) and Metro Capital Pvt. Ltd. (16.62%).
3. Nepal Micro Insurance Company Limited
- Shares Offered: 2,250,000
- Fundraising Goal: NPR 22.50 crores
- Application Date: Bhadra 24, 2081
- Issue Manager: NIMB Ace Capital Limited
Company Overview
Nepal Micro Insurance Company Limited (NMIC) is Nepal’s first non-life microinsurance provider to receive an operating license under the Company Act 2063 and Insurance Act 2079/80. Operational since Bhadra 8, 2079, NMIC serves rural and remote communities by offering affordable, customized coverage tailored to the needs of low-income households.
The IPO represents a strategic move to strengthen NMIC’s market presence and extend its reach to underserved regions.
4. Protective Micro Insurance Limited
- Shares Offered: 2,250,000
- Fundraising Goal: NPR 22.50 crores
- Application Date: Ashwin 20, 2081
- Issue Manager: NIMB Ace Capital Limited
- Credit Rating: [ICRANP-IR] BB
Company Overview
Licensed in April 2023, Protective Micro Insurance Limited operates from Dhangadhi, Kailali, with a paid-up capital of NPR 525 million as of mid-July 2024. Key shareholders include Himalayan Reinsurance Limited (21.43%) and Metro Capital Pvt. Ltd. (15.38%).
The company has demonstrated steady growth, reporting a profit of approximately NPR 4.29 million in 2023 and NPR 2.38 million in 2024. Its total assets increased from NPR 545 million in 2023 to NPR 594 million in 2024, reflecting its focus on financial strengthening.
Conclusion
The upcoming IPOs from these four microinsurance companies present exciting opportunities for investors and mark a turning point for Nepal’s insurance industry. By raising fresh capital, these companies can scale their operations and expand their services. With SEBON’s approval process underway, these IPOs are set to bring fresh momentum to Nepal’s capital market.