Shikhar Insurance Founder Share Sale Announcement in Nepal

8th January 2026, Kathmandu

Shikhar Insurance Company Limited, a prominent leader in Nepal s non life insurance sector, has officially announced the sale of its founder shares. This development is being closely monitored by investors and financial analysts, as founder shares represent the core equity and governance foundation of the institution. According to the company s latest regulatory filing, the shares are being offered for sale by certain existing promoter shareholders who wish to divest their holdings.

Shikhar Insurance Founder Share

The process is being conducted with a high degree of transparency and in strict adherence to the directives issued by the Nepal Insurance Authority (NIA). While the specific volume of shares and the identities of the sellers have not been publicly detailed, the announcement serves as a formal notice to all eligible stakeholders to participate in this strategic capital event.

Priority Allocation for Existing Founder Shareholders

In line with the standard corporate governance practices in Nepal s insurance industry, the current offering is exclusively available to existing founder shareholders in the first phase. This priority system is designed to allow current promoters to consolidate their ownership and maintain the internal stability of the company before the equity is potentially diluted among the general public.

Key procedural details for eligible applicants:

Application Window: Existing founder shareholders have a dedicated 35 day period from the date of the notice to submit their intent to purchase.

Contact Point: Applications and inquiries must be directed to the Office of the Company Secretary at the Shikhar Insurance head office.

Documentation: Applicants are required to provide their current shareholding details and a formal bid price per share, which must not be lower than the base price established by the company.

Should the 35 day priority period conclude without full subscription from the existing promoters, Shikhar Insurance has the provision to open the sale to the general public and other institutional investors, subject to further regulatory approvals.

Understanding Founder Shares in the Insurance Sector

Founder shares, often listed under the symbol SICLPO on the Nepal Stock Exchange (NEPSE), differ significantly from ordinary public shares (SICL). These shares are subject to a mandatory lock in period following an IPO, after which they can only be traded among promoters or converted into ordinary shares through a formal regulatory process.

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The strategic value of founder shares includes:

Governance Rights: Holders typically have a more direct influence on the election of the Board of Directors and the long term strategic vision of the company.

Stability: Because they are held by long term promoters, these shares provide a “stable anchor” for the company s capital base, protecting it from the high volatility often seen in the retail secondary market.

Pricing Differential: Historically, founder shares in Nepal have traded at a different price point compared to ordinary shares, often presenting a unique value proposition for institutional buyers seeking long term yields.

Company Profile and Financial Performance

Shikhar Insurance Company Limited (SICL) currently holds the highest market share in Nepal s non life insurance industry, approximately 13.29 percent. The company is known for its extensive network of 115 branches and its pioneer status in implementing global financial reporting standards like NFRS 17.

Despite its market dominance, the company s recent first quarter report for the fiscal year 2082/83 showed a net loss of Rs 158.58 million, primarily attributed to a rise in claim settlements and the adoption of more conservative reporting standards. However, the company maintains a robust ICRANP IR AA minus rating, indicating a high degree of safety regarding its ability to meet policyholder obligations and financial commitments.

Next Steps for Potential Investors

For existing promoters, this 35 day window represents a critical opportunity to expand their influence within a market leading institution. For individual and institutional investors currently outside the promoter group, the outcome of this primary phase will determine if the shares become available for public auction later in the year.

The company has designated Mr. Suraj Rajbahak, the Deputy General Manager and Company Secretary, as the primary point of contact for this transaction. Interested parties are encouraged to review the company’s latest quarterly disclosures and the specific terms of the sale before committing capital.

Conclusion

The sale of Shikhar Insurance founder shares is more than just a routine financial transaction; it is a reflection of the evolving capital structure of one of Nepal’s most respected insurance entities. By following a structured, 35 day priority process, the company is ensuring that its leadership remains stable while complying with the transparency requirements of the modern capital market. As the deadline approaches, the market remains eager to see how the existing promoter group responds to this opportunity and whether a broader public offering will follow.

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