Himalayan Reinsurance Limited, which recently issued an Initial Public Offering (IPO), has declared a bonus share of 4% for its shareholders. This decision was proposed by the company’s board during a meeting held on February 9, 2024, and will be presented for approval at the 3rd Annual General Meeting (AGM) scheduled for March 3, 2024, at Rastriya Sabha Griha, Pradarshani Marg, Kathmandu.
The progress made by Himalayan Reinsurance Limited in its business and net profit is exceedingly positive. The company’s premium collection has surged from 86 Crores in FY 2021/22 to 546 Crores in FY 2022/23, representing a remarkable increase of 535%. Moreover, the net profit has surged by 120%, reaching 64.96 Crores in FY 2022/23 from 29.21 Crores in FY 2021/22.
In a bid to fortify its business capabilities, the company has put forth an agenda in its forthcoming Annual General Meeting (AGM) to raise its authorized capital to 50 Arba from the existing 21 Arba. Additionally, it intends to issue rights shares in the proportion of 10:8, which will elevate its paid-up capital to 18.72 Arba from the current 10 Arba.
Himalayan Reinsurance Limited has been consistently achieving milestones, from upgrading its AM Best rating to B+ (Good) within just 3 years of operation to securing an operational license in the Indian market. The decision to augment the authorized and paid-up capital is poised to significantly enhance the company’s position to compete in the global reinsurance market.
It’s worth mentioning that the declaration of bonus shares in the same year as the IPO issuance marks a significant milestone in the insurance and reinsurance industry.