Prabhu Mahalaxmi Life Puts 328,194 Promoter Shares Up for Sale
17th December 2025, Kathmandu
Prabhu Mahalaxmi Life Insurance Limited has officially announced the sale of a significant block of its promoter shares. The company has put forward a total of 328,194 units of promoter shares for sale which are currently held by three of its existing promoter shareholders. This move is part of the regular equity management and transfer processes within the insurance sector and it follows the specific regulatory guidelines established for the trading of promoter shares in Nepal.
Prabhu Mahalaxmi Promoter Shares
The total volume of shares being offered consists of units from the individual holdings of three primary promoters. According to the formal notice issued by the company the shares include 235,128 units held in the name of Bodh Prasad Tripathi and 61,478 units held in the name of Binu Shrestha and 31,588 units held in the name of Binay Regmi. The sale provides an opportunity for existing or new investors to acquire a stake in the ownership of one of the established life insurance companies in the country.
Priority and Eligibility for Purchase
In strict accordance with the Insurers Promoter Share Trading Directive and the regulations set by the Nepal Insurance Authority the company is following a specific priority sequence for the sale. At this initial stage the priority to purchase these promoter shares is given exclusively to the existing promoter shareholders of Prabhu Mahalaxmi Life Insurance Limited. This rule is designed to allow current promoters to maintain or increase their relative ownership percentage before the shares are offered to outside parties.
As per the current eligibility criteria only the individuals or institutions that are already registered as promoter shareholders in the company are permitted to apply for these units. This internal offering ensures that the core ownership group has the first right of refusal regarding any major transfer of promoter equity.
Application Process and Deadlines
Interested promoter shareholders who wish to increase their holdings must follow a formal application procedure. The company has specified that the applications must be submitted within a period of 35 days from the date of the publication of the notice. The designated location for submitting these applications is the central office of Prabhu Mahalaxmi Life Insurance Limited which is situated in Kamaladi Kathmandu.
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Applicants are expected to specify the number of shares they intend to purchase and the price they are willing to offer provided it meets the minimum threshold set by the selling shareholders. If the existing promoters do not show interest or if any units remain unsold after the 35 day period the company has stated that it will move forward with the next phase of the sale. In that case the remaining promoter shares will be offered for sale to the general public or other interested investors who are not currently part of the promoter group.
Strategic Context for the Share Sale
Prabhu Mahalaxmi Life Insurance Limited was formed after the successful merger between Prabhu Life Insurance and Mahalaxmi Life Insurance. Such mergers often lead to a restructuring of the promoter group as individual investors may decide to rebalance their portfolios after the consolidation. The sale of these 328,194 units is a typical example of post merger equity adjustments where long term promoters may look for liquidity or exit opportunities while others may see it as a chance to consolidate their control.
The insurance sector in Nepal has seen a significant amount of activity recently due to increased capital requirements mandated by the regulatory authority. By ensuring that these share transfers happen within a transparent and regulated framework the company maintains its financial integrity and adheres to the governance standards required for public limited entities. The proceeds from such sales go directly to the selling shareholders while the paid up capital of the company remains unchanged as it is a transfer of existing equity rather than an issuance of new shares.
Conclusion for Shareholders and Investors
The announcement by Prabhu Mahalaxmi Life Insurance Limited regarding the sale of over three hundred thousand promoter shares marks an important event in the secondary market for insurance stocks. For the existing promoters this is a 35 day window to strengthen their position within the company. For the general public it is a signal to stay informed about the potential opening of these shares for broader investment if the current promoters do not fully subscribe to the offer.
As the company continues to grow after its merger the stability of its promoter group and the successful management of share transfers will play a key role in its long term success and market valuation. Interested parties are encouraged to review the company financial reports and consult with financial advisors before participating in such equity transactions.
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