Prabhu Mahalaxmi Life Insurance Announces Promoter Share Auction
28th December 2025, Kathmandu
In a notable move within the Nepalese insurance sector, Prabhu Mahalaxmi Life Insurance Limited has officially initiated the auction sale of its promoter group shares. This process is designed to facilitate the transfer of equity among qualified investors while ensuring compliance with the stringent corporate governance standards set by the Nepal Insurance Authority.
Prabhu Mahalaxmi Promoter Share
To manage this technical and highly regulated process, the company has appointed Muktinath Capital Limited, a well-established subsidiary of Muktinath Bikas Bank Limited, as the official sales and auction manager. This strategic restructuring of ownership is part of the broader evolution of the life insurance industry in Nepal, where institutional stability and diverse promoter bases are increasingly prioritized.
DETAILS OF THE PROMOTER SHARE AUCTION AND BIDDING PROCESS
The auction involves a total of 175,000 promoter shares of Prabhu Mahalaxmi Life Insurance Limited. Unlike ordinary shares traded on the secondary market, these promoter shares carry specific rights and responsibilities, often requiring a deeper level of regulatory scrutiny for the buyers. The company has fixed the minimum bid price at 270 rupees per share. A key condition of this particular auction is that interested bidders must apply for the full quantity of 175,000 shares; partial applications for smaller lots will not be entertained. This requirement ensures that the significant block of equity is transferred to a single, financially capable entity or individual who meets the promoter criteria.
APPLICATION TIMELINE AND SUBMISSION GUIDELINES
The window for submitting sealed bids is relatively narrow, requiring prompt action from potential investors. The application period begins on 13 Ashwin 2082 and is scheduled to close on 29 Ashwin 2082. All bids must be submitted physically at the office of Muktinath Capital Limited, located in Narayanchaur, Naxal, Kathmandu. To participate, applicants must purchase a formal bid application form for a fee of 100 rupees. It is essential that the forms are filled out accurately, with the bid price and share quantity clearly stated in both words and figures to avoid any ambiguity during the evaluation phase.
FINANCIAL REQUIREMENTS AND THE GOOD FOR PAYMENT CHEQUE
To maintain the integrity and seriousness of the auction, Prabhu Mahalaxmi Life Insurance and Muktinath Capital have mandated strict financial deposit rules. Every bidder is required to submit a Good for Payment cheque covering the total value of their bid. This cheque must be made out in the name of Muktinath Capital Limited. This system ensures that only those with immediate and verifiable liquidity can participate. For those whose bids are not successful, the deposit amount will be refunded through the Interbank Payment System (IPS). It is important to note that no interest is paid on the bid amount during the processing period, and the funds are held securely until the allocation is finalized.
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ELIGIBILITY CRITERIA AND THE FIT AND PROPER TEST
Participating in a promoter share auction in the insurance sector is not open to all; it requires meeting specific “Fit and Proper Test” criteria. Eligible individuals, institutions, and organized companies must demonstrate financial credibility, a clear source of income, and a clean tax record. Applicants are required to submit their identification papers, tax clearance certificates, and declarations regarding their total share ownership across other financial institutions. Institutional bidders face even more rigorous requirements, including the submission of board resolutions, company registration certificates, and the most recent audited financial statements. These measures are designed to ensure that the promoters of insurance companies are individuals or entities of high integrity.
PRIORITY ALLOCATION AND FINAL BID OPENING
Following the regulatory guidelines, the first priority for the allocation of these shares is given to the existing promoter shareholders of Prabhu Mahalaxmi Life Insurance Limited. This allows current owners to maintain or increase their stake before external investors are considered. If the shares are not fully subscribed by the existing promoters, they will be allocated to the highest external bidders in descending order of their price offers. The final bid opening is scheduled for 29 Ashwin 2082, starting after 3:00 PM at the office of Muktinath Capital. This public opening ensures transparency in the selection of the winning bidder.
STRATEGIC IMPACT ON CORPORATE GOVERNANCE
This auction is seen as a significant step in strengthening the corporate governance framework of Prabhu Mahalaxmi Life Insurance. By attracting qualified and financially sound promoters, the company enhances its institutional stability and aligns its ownership structure with the latest regulatory directives. As the life insurance market in Nepal grows more competitive, having a strong and transparent promoter base is vital for maintaining public trust and securing long term financial growth. Muktinath Capital, as the auction manager, has urged all interested parties to comply fully with the stated terms to ensure a smooth and dispute-free transaction.
CONCLUSION AND NEXT STEPS FOR INVESTORS
In conclusion, the promoter share auction of Prabhu Mahalaxmi Life Insurance Limited represents a premium investment opportunity for high-net-worth individuals and institutional investors. With a minimum bid price of 270 rupees and a block of 175,000 shares, the auction is set to play a key role in the company’s capital structure. As the deadline of 29 Ashwin approaches, potential bidders must ensure all their documentation and financial deposits are in perfect order. This event reflects the continued confidence in the resilience and potential of Nepal’s insurance industry.
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