This snapshot has been compiled to give an overview of the FPO of Shikhar Insurance Company Limited (SICL) to interested investors willing to apply in the upcoming Further Public Offerings of the ordinary shares by the SICL.

1. Shikhar Insurance Company limited’s (SICL) FPO Snapshot
This snapshot has been compiled to give an overview of the FPO of Shikhar Insurance Company Limited
(SICL) to interested investors willing to apply in the upcoming Further Public Offerings of the ordinary
shares by the SICL. The information has been obtained from the published prospectus of the company,
company’s website and published financials of the company along with data from Nepal Stock Exchange.
FPO Details
Name of the Company Shikhar Insurance Company Limited
Business Non-Life Insurance Company
Offering type Further Public Offering (FPO)
Issue Amount (in NPR) 332,142,200
Issue Manager NIBL capital Limited
Issue Open date 2072/08/17
Issue Close date (earliest) 2072/08/21
Issue Close date (Latest) 2072/09/02
Minimum Number of shares to be applied 10
Maximum Number of Shares that can be applied 100,000
Offer Price NPR 650
Market Price: NPR 800 (as of November 29, 2015)
180 days Market Price average: NPR 865.63
*number of shares applied should be in multiple of 10
No. Collection Center Phone
Contact
person
1
Shikhar Insurance Ltd.Thapathali, Kathmanduand branch offices
Newroad, Gongabu, Chahabil, Biratnagar, Birgunj, Pokhara,
Narayangarh, Butwal and Nepalgunj.
4246101
Suraj
Rajbhahak
2 NIBL Capital Markets Ltd, Lazimpat, Kathmandu
4005080
Anil
Maharjan3 All branches of NIBL
4 *Kriti Capital and Investments Ltd., Soaltemode, Kathmandu 4276786
Karuna
Thapa
* Only cheques are received in this collection center
General Information of the Company
About the Company
Shikhar Insurance Company Limited, established as the 15th
non life insurance company of Nepal, was
registered as a public limited company on 28th
march, 2004 with the Company Registrar’s Office as per
Companies Act, 2063. The company received operating license from Beema Samiti on 11th
November,

2. 2004. The company has 21 branches spread across the country, the head office and registered address is
in Shikhar Biz center, Thapathali, Kathmadu, Nepal.
Capital Structure
The authorized capital of the company is NRs. 600 million (6 million shares of NRs. 100 each) and NRs.
357.69 million is the issued capital. Out of the issued capital, NRs. 286.15 million (2.86 million shares of
NRs. 100 each) is fully paid by the promoter shareholders, which accounts for 80% ownership. After the
Further public offering, an additional 51.09 million will be raised from the general public, which when
added to the existing 71.538 million represents 30% of the ownership.
Board of Directors and Management
The company currently has 7 directors who represent diverse backgrounds. Promoters group include
business personnel, social activists and other intellectuals. Given below is the list of the Board of
directors of the company:
S.NO. Name of the directors Designation
1 Mr. Bikash J.B. Rana Chairman
2 Mr. Ang Tshiring Sherpa Director
3 Mr. Gaurav Agrawal Director
4 Mr. Ramesh Kumar Luitel Director
5 Mr. Rajendra Prasad Shrestha Director
6 Mr. I.P. karmacharya Independent Director
7 Mr. Skand Amatya Director
Table 1: Board of Directors of the Company
The management team of the company is as below:
S.NO Name Designation
1 Mr. Dip Prakash Panday Chief Executive Officer
2 Mr. Bimal Raj Nepal Advisor
3 Mr. Pushkar Mahat Senior Business Development Advisor
4 Ms. Sabita Maskey Deputy General Manager
5 Mr. Udit Prasad Kafle Assistant General Manager
6 Ms. Barishma Acharya (Saud) Assistant General Manager
7 Mr. Suraj Rajbahak Manager/ Company Secretary
8 Mr. Nilesh Ratna Tuladhar Manager (Accounts)
Table 2: Management Team of the Company

3. Financial Highlights of the Company (as per the announcement notice published on November 26,
2015)
The key comparative financial data of Shikhar Insurance Company Limited are given below:
Amount in NPR '000
Particulars 2067/68 2068/69 2069/70 2070/71 2071/72
Paid up capital 125,000.00 125,000.00 175,000.00 297,772.00 357,691.00
Reserve and Surplus 40,712.75 65,981.67 56,626.35 84,247.75 135,547.22
Insurance Fund 62,881.40 92,365.24 132,139.77 197,032.58 320,422.22
Long term loans and liabilities 30,246.28 - - - -
Total Revenue 98,209.27 109,251.01 150,636.36 220,462.74 368,317.31
Total Expenses 41,974.50 51,735.47 68,189.77 89,335.61 121,538.03
Net Profit/ (Loss) 56,234.77 57,515.54 82,446.60 131,127.13 246,779.28
EPS 44.99 46.01 47.11 44.04 68.99
Growth rate of EPS 2.28% 2.39% -6.53% 56.67%
P/E ratio of FPO share 9.42
Table 3: Financial Highlights of the Company
Forecasted Financials of the Company
Particulars 2072/73 2073/74 2074/75
Paid up capital 408,790.00 408,790.00 408,790.00
Reserve and Surplus 613,047.00 697,235.00 1,125,362.00
Total Revenue 522,484.86 724,087.80 888,906.92
Total Expenses 203,295.68 275,743.95 337,448.06
Net Profit/ (Loss) 319,189.18 448,343.85 551,458.86
Distributable fund 343,643.30 757,622.81 1,233,319.39
EPS 78.08 109.68 134.90
Table 4: Forecasted Financial highlights of the Company

4. Comparative Analysis as of 4th QTR 2071/72
Particulars
Shikhar
Insurance
Sagarmatha
Insurance
NLG
Insurance
Premier
Insurance
Paid Up Capital 357,691.00 356,544.00 341,550.00 287,502.00
Reserve and Surplus 135,609.00 229,641.00 100,235.00 183,544.00
Net Profit 246,916.00 110,010.00 153,461.00 143,198.00
EPS 69.03 30.85 44.93 49.81
Market Price as of 30th Nov,
2015
800.00 784.00 649.00 433.00
P/E ratio 11.59 25.41 14.44 8.69
ROE 50.05% 18.77% 34.74% 30.40%
Table 5: Comparative Analysis of the Company
Shikhar Insurance Company Limited FPO Procedures
Share Application
Investors can collect the application form from the collection centers mentioned above. Investors are
required to make full payment (NPR 650 multiplied by number of shares applied) at the time of
submitting application. Investors need to apply for minimum 10 shares. For individual investors,
application forms should be attached with a self attested photocopy of citizenship and one photo of the
applicant. Whereas, for the investment in the name of the company documents to be submitted along
with the application form are: copy of board decision to make the investment, company registration
certificate, PAN certificate of the company and photo and brief of the chief executive of the company.
Applicant applying for shares more than NPR 10 lakh should provide PAN number in the application
form.
Share Allotment
Under former Securities Allotment Guidelines, 2051, more weight was given to small applicants.
However, the new directive (Share Allotment Directive, 2068) has made provisions to allot shares under
proportionate basis to ensure equal weight to all applicants irrespective of amount of application or
volume of oversubscription. Under the current allotment guideline, Investors applying for shares less
than NRs. 50,000 are categorized as retail investors, and 40% of the issued securities have to be
mandatorily allocated for them. Remaining 60% are to be allotted under pro rata basis of allotment.
However, if total applications by the retail investors represent more than 40% of total applications
receive, all shares will be allotted proportionately.
Liquidity of Investment
As per the Securities Issue Guidelines, 2065, the allotment of the shares (if number of application form is
less than 100,000 applications) must be made within 40 days of application made. Within five days from
the allotment, in case of oversubscription, excess amount should be refunded. Within the application

5. processing period, investors will get 80% of the placement revenue earned by the Issue Manager by
depositing the amount with the bankers to the issue. The securities allotted are not liquid investment
until they are listed in the secondary market. As per the guidelines, application for listing the securities
allotted in public issue should be made to the stock exchange (NEPSE) within 30 days of allotment. The
shares can be traded only after the application is approved by NEPSE, which might require further time.
Securities could be traded in the secondary market only after 7 days after the listing of securities in
NEPSE. So, tentatively, shares bought in the primary market will be tradable in the secondary market by
3-4 months.
Overview of the FPO
 Currently the shares of SICL are traded at NRP 800 (as of closing price of 29th
Nov, 2015) which
means that the offered FPO is at a discount of 18.8%.
 General understanding is that the investor in FPO of SICL is likely to receive the dividend of FY
2071/72 which the company is yet to distribute. However, No formal information has been
received in this regard.
DISCLOSURE STATEMENT: The information in this report has been prepared by Kriti Capital &
Investments Ltd. for the distribution to prospective investors based on the information published in
the prospectus prepared for the purpose of this FPO.
KRITI CAPITAL & INVESTMENTS LTD
Kriti Capital & Investments Ltd. is a public limited company providing investment banking services in
Nepal. Established with the motto of ‘creating growth opportunities’, Kriti Capital and Investments
Limited aims to provide an efficient and effective medium for capital mobilization to investors to earn
superior return on capital. On the backdrop of creating superior financial return, Kriti Capital aspires to
promote entrepreneurial and innovative initiatives and opportunities for committed and dynamic
entrepreneurs.
Contact Us/Office Locations
Mathuri Sadan, 6th
Floor, Ganeshman Singh Path – 1113
Ravibhawan, Kathmandu, Nepal
Tel: 01-4276786, 01-4281776
Email: info@kriticapital.com.np
www.kriticapital.com.np