May 23, 2022 | Investopaper
General Insurance Company Nepal Limited (GIC) is planning to issue right share to the shareholders.
The board of directors’ meeting of the company held on Jestha 6, 2079 BS has decided to sell 10:3 right share. This means that shareholders with 100 shares can apply for the 30 right share at a par value of Rs. 100 per share.
As per the directive of Nepal Insurance Board (Beema Samiti), non-life insurance companies are required to meet the minimum paid-up capital of Rs. 250 crores by the end of Chaitra 2079 BS.
As of Chaitra’s end, 2078 BS, GIC has a paid-up capital of Rs. 100 crores.
However, the right issue is subject to approval from Beema Samiti. If approved the the Insurance Board, the company will take the proposal of right offering to its special general meeting.
After the endorsement from the shareholders’ meeting, the company will then submit the application to the the Securities Board Of Nepal (SEBON) seeking permission to float the shares. Only after the approval from the board, the company can finally sell the shares.
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