Himalayan Reinsurance to Issue 1:0.8 Right Share
February 11, 2024 | Investopaper
Himalayan Reinsurance Limited (HRL) is planning to sell right shares to the shareholders.
The company has decided to float the right shares in the ratio 1:0.8. This means that the shareholders with 100 shares can apply for the additional 80 shares.
As of Poush’s end 2080 BS, Himalayan Reinsurance has a paid up capital of Rs. 10 Arba. After the inclusion of the proposed 4 percent bonus share, the capital will increase to Rs. 10.40 Arba. Hence, the company has plans to sell right shares on the capital of Rs. 8.32 Arba. After the right issue, the paid-up capital will reach Rs. 18.72 Arba
The company will take the agenda of issuing the right shares to its upcoming AGM for the approval after receiving the permission from the regulatory board, Nepal Insurance Authority.
If approved by the annual meeting, the company will begin the the procedures for the right offering.
As per the direction of Nepal Insurance Authority, the regulatory body, the reinsurance companies are required to meet the minimum capital of Rs. 20 Arba. Hence, Himalayan Reinsurance has opted for the right issue in order to reach the capital requirement.
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