Asian Life Insurance to Issue 1:0.42 Right Share | Application Submitted to SEBON
July 10, 2024 | Investopaper
Asian Life Insurance Limited is planning to sell right shares to the shareholders. The company has decided to float the right shares in the ratio 1:0.42. This means that the shareholders with 100 shares can apply for the additional 42 shares.
For this purpose, the life insurance company has submitted an application to the Securities Board of Nepal (SEBON) on Jestha 23, 2081 BS. Only after the approval from the regulatory body SEBON, the company can sell shares to the public.
As of Chaitra’s end 2080 BS, Asian Life Insurance has a paid up capital of Rs. 339.98 crores. Hence, the company has plans to sell 1,42,79,312 right shares worth Rs. 142.79 crores. After the right issue, the paid-up capital will reach Rs. 482.77 crores.
The company has appointed Muktinath Capital Limited as issue and sales manager. An agreement between the company and Muktinath Capital has been inked on this regard. The agreement was signed by Dinesh Lal Shrestha, CEO of Asian Life Insurance and Kavindradhwaj Joshi, Chief Executive Officer of Muktinath Capital.
As per the direction of Nepal Insurance Authority, the regulatory body, the life insurance companies are required to meet the minimum capital of Rs. 500 crores. Hence, Asian Life Insurance has opted for the right issue in order to reach the capital requirement.
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