Net profit of Shikhar Insurance boosted to Rs. 100 million, reserve increased by 3 times

Kathmandu February 12- Net profit of Shikhar Insurance company  in the second quarter of current FY has boosted by 36.76% to Rs. 101 million 184 thousands in compare to corresponding period of previous FY which was Rs. 73 million 986 thousands.

Reserve fund of the company has balance of Rs. 456 million 43 thousands which is 3 times more than previous FY that was Rs. 124 million 415 thousands. Similarly, income of the company has increased by 24.34% to Rs. 950.8 million while its expenses has increased by 22.06% to Rs. 805 million 537 thousands. During the period of second quarter of current fiscal, company has earned Rs. 755 million 161 thousands insurance premium and paid claim amount of Rs. 433.7 million.

As per the publicized financial report, EPS of the company is Rs. 6, P/E ratio of 92 times, net worth per share of Rs. 193, total asset per share is Rs. 427 and liquidity ratio of 1.48%.

During the period, Shikhar insurance has issued 510 thousands 988 units of shares as FPO at the price of Rs. 100 with premium of Rs 550. Company issued FPO of 510 thousands 988 unit shares in order to convert the proportion of promoters and general shareholders in total stake to 70:30 earlier which was 80:20.

The FPO was oversubscribed by 14 times through 17 thousands applicants from which company amplify share capital by Rs. 51 million 98 thousands 800 and share premium account by Rs. 281 million 43 thousands which has been adjoined to reserve fund. Shikhar insurance has proposed 30.8% bonus share to its shareholders. Operating with Rs. 357.6 million paid up capital, Shikhar insurance's paid up capital inflated to Rs. 408.7 million after issuance of FPO. After bonus share distribution, company's paid up capital will hop to Rs. 510 million.